Treasury has given Admarc a guarantee to borrow K22 billion from commercial banks to purchase farm produce, as Finance Minister Felix Mlusu outlined that the sum will help Admarc to buy farm produce for its commercial functions.
The above follows after Vice President Saulos Chilima insisted that as the Minister of Economic Planning and Development, he will not grant any bailouts to parastatals. In June this year, (Admarc) says it needs $300 million (about K222 billion) for recapitalisation to ensure smooth operations, as the state buyer has been criticized for slacking this year. Admarc chief executive officer Felix Jumbe presented the sum which is more than the K100 billion that the company wanted to borrow in April this year. According to Jumbe, the government cannot manage the sum alone, even as a majority shareholder, hence he suggested external financing through Parliament’s Loan Authorisation Bill.
Having received a sum that is K278 billion short of the K300 billion bank surety, Jumbe said the guarantee would help Admarc to buy about 100,000 tonnes of maize to help alleviate hunger this year.