State produce trader Agricultural Development and Marketing Corporation (Admarc) says it plans to lay off about 2 600 employees to cut expenses.
Speaking on Thursday when Admarc appeared before the Parliamentary Committee on Agriculture and Food Security, the parastatal’s board chairperson Alexander Kusamba Dzonzi said more than half of the company’s employees are not qualified.
He said Admarc has 3 687 employees, but only 1 055 have the right qualifications. He further said there is a process to get rid of the unqualified staff.
Parliamentary Committee on Agriculture and Food Security chairperson Sameer Suleman wondered why the parastatal is keeping over 2 000 unqualified employees, but managed to suspend a general manager within a week.
He said the unqualified employees are costing government money.
“Why is the law working quickly on one side? If one does not have qualifications, they should not be paid. They should be suspended pending investigations as was the case with the general manager,” said Suleman.
Asked in an interview what the company is doing about the unqualified employees, Dzonzi said they were supposed to be laid off long ago but management was delaying.
“The total number of employees is 3 687. The wage bill is K650 million every month. So if we lay off, we will remain with 1 055 employees. I am sure that we will reduce the wage bill by two thirds,” he said.
Admarc has in recent months been struggling to pay its workers on time due to cashflow challenges. The corporation is haunted by debts and owes banks in excess of K64 billion.
In February, suspended general manager Rhino Chiphiko revealed that the company recorded a K14 billion loss in the past financial year, instead of the projected K3 billion profit.
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