Ministry yet to audit Mpico rental arrears
Ministry of Finance, Economic Planning and Development says it is yet to audit some of the K5 billion Mpico Limited claims before issuing full payments.
The ministry’s spokesperson Alfred Kutengule disclosed this in response to a questionnaire that audits and interest negotiations are the ones delaying full payment.
have been audited
“Mpico’s total claim is in the range of K5 billion to K6 billion inclusive of unpaid rentals plus accrued interest. However, not all the rental arrears have been audited and certified by the Auditor General. So far, a total of K1.4 billion has just been settled through Zero Coupon Promissory Notes [ZCPNs].
“Two issues are apparently delaying full settlement to Mpico; the rest of the rental arrears have to be audited and certified and the claimed interest needs to be negotiated,” he said.
Kutengule said that Treasury intends to settle the claims through ZCPNs after the two issues have been resolved.
Mpico Limited board chairperson Edyth Jiya told Business News on Wednesday that while government has tried to settle arrears through issuance of promissory notes, the firm hoped government would do more to intervene to ensure the company operations are sustained on the market.
However, Jiya, who is group chief executive officer of Old Mutula Malawi, feared that if arrears remain unpaid, it could affect the company’s operations.
In July 2015, Mpico Limited locked out government ministries and departments from Gemini and Tikwere houses in Lilongwe over outstanding rental arrears estimated at K2.9 billion during which time an official from the Ministry of Finance, Economic Planning and Development said it was unfortunate that Mpico resorted to locking out the ministries and departments, saying government has been a trusted tenant for many years.
Earlier this year, Mpico Limited raised K9 billion through a rights issue to settle debt with financiers of Gateway Shopping Mall in South Africa. n
