Admarc retrenches entire workforce
Financially crippled Agricultural Development and Marketing Corporation (Admarc) has fired its entire 4 000-plus staff effective February 1 2023 as part of its restructuring process.
In a circular to the employees dated January 30 2023, Admarc acting general manager Ethel Zilirakhasu said the company is implementing a 100 percent retrenchment and the last working day for all staff is today, January 31 2023.
Reads the letter: “This is to advise all employees that the mandatory paid leave ends on 31st January, 2023. All employees will receive their letters of retrenchment at least within seven days from the date of this circular.”
But the communication further said the company will give a three-month employment contract effective February 1 2023 to some employees, especially those that worked as skeleton staff to help with the transition while the company will be completing other processes.
“The employees to be on contract employment for three months will receive their letters of contract employment within seven days of this letter. Government has committed to pay January 2023 salaries, pension arrears and retrenchment packages within the required period,” said the circular.
In an interview last evening, Zilirakhasu confirmed that the government paid the staff their salary arrears except for January 2023.
Admarc is one of the parastatals that have been struggling financially and has over the years failed to serve Malawians as per its mandate as a produce price stabiliser and ready market for farmers. Admarc has also failed to perform its social function as government’s food security apparatus.
In September 2022, Ministry of Agriculture closed Admarc and sent its entire staff on paid leave to pave the way for restructuring. However, it continued to perform some social services with selected staff members.
The Ministry of Agriculture outlined the conflict between Admarc board of directors and management, leading to poor governance and abuse of company finances and theft by some employees, as some of the factors that influenced the decision.
The ministry also cited low productivity by some company employees, suspected corruption perpetrated by some employees and unprocedural recruitment leading to excess workforce as other factors frustrating the growth of the company.
The ministry gave itself three months to conclude the investigations and restructure the corporation.
However, following the development, government spent close to K3.750 billion on payments to Admarc staff for doing nothing over a period of five months as Admarc’s wage bill stands at K750 million per month.
Admarc, which owes commercial banks over K70 billion in outstanding loans, is said to have 4 063 salaried employees instead of 1 500 members of staff.
