Ecama faults K1.7bn Admarc loss

The struggling Agricultural Development and Marketing Corporation (Admarc)’s financial position continues to weaken following revelations that the parastatal incurred a loss of K1.7 billion (about $4.5m) in the 2011/12 financial year, according to a 2013 government annual economic report.

The parastatal posted a loss of K2.3 billion (about $5.7m) during the 2010/11 financial year compared to another loss of K1.9 billion (about $4.7m) in the previous year, according to an abridged statement of a financial position.

The Economics Association of Malawi (Ecama) has since faulted the continued under-performance of the parastatal, wondering why other private grain traders are making profit on the market when the public grain trader is grappling with the same.

Said Ecama executive director Nelson Mkandawire on Wednesday: “We are all aware that Admarc today is not the same Admarc we all knew in the past. We need re-look at the leadership of the institution and let it independently operate.”

The government blue-print also states that shareholder support to restructure the company will be required if it is to play its role in the economy.

Any restructuring, according to the report, will have to address all areas of the company’s business for it to return onto a sustainably profitable track.

Ministry of Finance spokesperson Nations Msowoya said Admarc’s problem is a ‘cash flow timing issue’, adding that with changing dynamics on the market, it is imperative for the parastatal to adjust towards such changes.

Msowoya also said ideally, there is need for Admarc to have its budget allocation as early as March or April after maize harvest for it to compete effectively.

Admarc general manager Jerry Jana could not be reached on Wednesday to comment on the company’s performance as indicated in the report.