Posted by Peter M. Allan on 08 Jul 2021, 14:48:33 in Business
AHL Group, a major player in the country's agriculture sector says it is set to retrench 480 of its employees, Acting Group Chief Executive Officer, Alfred Nkhono has disclosed.
Nkhono said the company's wage bill shows that it has a total of 787 staffers and it's putting pressure on its resource basket.
Nkhono disclosed the status quo during an interface with Reserve Bank of Malawi officials that are following up with various companies in Lilongwe on their continued failure to remit pension arrears.
According to Nkhono, the company is technically insolvent and that the retrenchment is an effort to save the establishment from total collapse, pointing out that the retrenchment will be done within the next 2 months.
He has further disclosed that the company will also be closing four of its seven subsidiaries. They are ICT Tech Africa Ltd, Malawi Leaf, AHL Commodities Exchange and AHL Chemicals.
Nkhono says the financial challenges have been responsible for the Group's inability to remit pension deductions justifying the need for the company to restructure through reduction of entities and staffing levels.
According to the Reserve Bank of Malawi, at least 24 companies are twelve months in arrears in their payment of Pension funds. The Central bank has since expressed intent to drag such companies to court.
Peter M. Allan is a writer, communicator, journalist , computer programmer and founder of malawiblast.com , pa4ways.com and chanco-punch.com. He graduated from University of Malawi, Chancellor College with Bachelor of Arts Communication and Cultural Studies. On free time he likes reading, coding, writing, travelling and playing football. You can reach him through firstname.lastname@example.org .
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