Property management firm, Mpico plc is owed K5.8 billion in rental arrears by government, the company has said in published audited financial statements for the year ended December 31 2019 .
In a statement signed by Mpico chairperson Edith Jiya and managing director Damian Kafoteka, the firm said government rental arrears are outstanding and negatively impacting their business operations.
But despite the challenge, the firm’s profit after tax rose by 12 percent to K7.6 billion in the review year, up from K6.8 billion in 2018.
Total expenditure for the year decreased to K4 billion from K6.2 billion the year before due to savings on cost, discounting costs on promissory notes and impairment on plant and equipment.
Mpico, paid an interim dividend of K229.8 million in September 2019 and the final dividend of K344.7 million in respect of the 2019 profits, making a total dividend of K574.5 million for the year. The funds will be paid in June this year.
Meanwhile, Treasury spokesperson Davis Sado said they “would chip into the matter once the repayment plan is drawn by the line ministry”. Mpico plc, which has over 25 investment properties that are let out to government and private sector, is 72 percent owned by Old Mutual Malawi, 23 percent by Lincoln Investments Limited and five percent by the public.