The Tobacco Commission (TC) has disclosed that it recorded a K325 million profit in 2021. The Commission has attributed the success to the implementation of reforms that turned around the parastatal’s financial performance last year.
TC spokesperson Telephorus Chigwenembe told Nyasa Times on Thursday that the development has enabled the institution to bail itself from financial losses.
“The improved financial performance has come about because of sound financial management measures that the institution put in place to avoid loss that was recorded in 2020,” he said.
In the 2019/2020 financial year, Chigwenembe said, the Commission’s revenue came to K3.6 billion, but recorded a loss of K81 million.
However, he said, by the end of the 2020/2021 financial year, the institution’s revenue was at K3.5billion but recorded a K325 million profit.
This enabled the Commission to remit 20 percent of its surplus to the government, he said.
Chigwenembe pointed out that the Commission’s declaration of dividends comes when some government subvented organisations are performing dismally financially and are requesting government to bail them out.
Apparently, TC operates without government subvention and the institution’s revenue is generated from statutory levies.
On Monday this week, the Commission presented to Vice President Dr. Saulos Klaus Chilima, who is responsible for Public Sector Reforms, a progress of reforms implemented by the parastatal organisation between March 2021 and February this year.
When it met Chilima, the Commission covered five reform areas, namely the strengthening of the regulatory framework; enhancement of tobacco production and marketing integrity; the improvement of stakeholder understanding of the Commission’s mandate and roles; improvement of financial sustainability; and the strengthening of institutional capacity.
Meanwhile, according to its strategic plan, Chigwenembe said, TC, which is mandated to promote the production and marketing of tobacco in the country, seeks to increase the country’s annual tobacco production volumes by 2023.Follow and Subscribe Nyasa TV :