Shareholders sacrifice dividends

Mpico shareholders have reinvested their dividends for 2012 into the construction of the R410 million Gateway Shopping Mall in Lilongwe.

The members made the sacrifice on Friday as one of Mpico 2013 Annual General Meeting (AGM) resolutions.

The mall stalled last year due to economic problems the country was going through. Projections had it that the mall would be operative by February 2013. However, the mall is expected to be in operation April 2014.

Mpico acting general manager Cosmas Katulukira said the more stalled because of forex shortage and as a result the partners were unable to pay outstanding bills to the contractor.

He said with the current improvements in the economy the progress of construction was satisfactory.

He said Mpico as partners in the mall was assigned to foot R130 million and part of the money was already injected into the construction.

However, he could not give tell the specific figure the shareholders have sacrificed.

Katulukira said the shareholders took a bold step in reinvesting the dividends, but said they will reap greatly from the rentals when the mall opens.

“This is not just a mare mall. It is a regional shopping mall for Zambia, Mozambique and Malawi as people will come from these countries to access various items at the mall.

“The shareholders are aware of the fact that their sacrifice will pay greatly. Right now, there is progress in construction and in July, the contractor will start roofing,” said Katulukira.

Apart from sacrificing the dividends, the members also carried a motion for re-election of Mpico board chair, increase fees and allowances for directors by 25 percent, and authorise renegotiation of managing director package.

They also called on the directors to avoid borrowing considering that Mpico was operating in financial challenges.