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Malawi: Govt Sets Aside K6bn for Admarc Retrenchment Compensation

Admarc board of directors chairperson Alexander Kusamba Dzonzi says government has set aside over K6 billion in compensation to laid-off state run produce company employees.

This follows an announcement that Admarc is to retrench over 3,000 workers as part of a restructuring program.

According to the authorities, the shake-up is the only way they could revive the institution’s operations for the benefit of ordinary farmers.

Kusamba Dzonzi has justified the payment of staff prior to their being laid off stressing that timely settling of labour issues is a government obligation.

Kusamba Dzonzi said the number of employees will be reduced from 4 687 to 1565, representing 67 percent cut.

He said the financially struggling state produce trader has “too many employees” on its payroll who were not adding value but only burdening taxpayers.

He described Admarc as a casino for politicians and other ‘big boys’ in the country.

A document in our possession collaborates what Kusamba Dzonzi told the parliamentary committee.

The document says Democratic Progressive Party (DPP) politicians burdened the Admarc wage bill with cadets, mistresses, party dancing women, nieces, uncles, aunts, thereby bloating the wage bill with over 3,000 people who were not required in the Admarc structure.

The report also says that over 100 cases against Admarc, majority of which were aimed at stripping off the parastatal assets.