PTC suppliers write ministry on unpaid dues

Four suppliers of the People’s Trading Centre (PTC) have sought the intervention of Ministry of Trade and Industry on their outstanding K3.7 billion dues for goods and services rendered to the private firm.

The suppliers argue that the unpaid bills for goods and services provided to the private firm, whose future hangs in the balance, were affecting their business operations.

PTC, until July this year a subsidiary of Press Corporation plc, was sold to Tafika Holdings Limited in a deal where the new investor acquired 100 percent stake at K6 billion. The Competition and Fair Trading Commission approved the deal in June this year.

According to a sale purchase agreement we have seen, under conditions precedent clause 4.1.5, the purchaser was expected to submit to the seller a written confirmation that all assumed liabilities have been settled or agreements entered into with suppliers or judgement creditors confirming settlement within 60 days after signature date.

In line with the clause, Tafika was expected to pay the liabilities within two months from February this year.

But in a letter addressed to Ministry of Trade and Industry Principal Secretary dated August 25 2022 and co-signed by Estrell Trading founder Cecilia Rice, Orascon Security Services, Imani Investment managing partner Moses Nyirenda and Area Q Group of Companies founder Mabuchi Mwafulirwa, the suppliers claim that they are yet to be paid for the goods and services provided to PTC.

Reads the letter in part: “We have been patiently waiting to receive our money from PTC and we have been checking with PTC management who have been waiting for the new investor [Tafika Holdings Limited] to invest the capital out of which K3 706 048 224.46 was to be paid to us the trade creditors from the purchase consideration of assumed liabilities.

“We, therefore, seek the ministry of Trade to intervene on this matter specifically for PCL plc to finance PTC to settle our bills and collect the purchase consideration from Tafika Holdings as further delay in settling our debt is affecting us as it forms a huge part of our working capital.”

Minister of Trade and Industry Mark Katsonga yesterday said the ministry was yet to receive the letter, but said his ministry will engage concerned parties on the matter.

He said: “We have been in discussions with the Press Corporation, PTC as well as Tafika Holdings Limited since the idea to sell this company was hatched,” he said.

PCL announced to have reached an agreement with Tafika Holdings for the sale of PTC at K6 billion, which will be used to pay liabilities in lieu of paying PCL.

Currently, most PTC shops have closed down, a development Tafika Holdings has attributed to a strategy of growth which they have.