MPC requires K18 billion bailout

Malawi Post Corporation requires K18 billion bailout from Tax Payers

Post was last updated: October 6, 2020

Malawi Post Corporation (MPC) said it needs about K17.9 billion to reposition its business and turn it into a profit-making venture.

In an interview, MPC Acting Chief Executing Officer, Zachaeus Meke, said the organisation is implementing a turnaround strategy for its business.

He said first, the institution intends to realign its labour force which would require about K9.2 billion and later invest in various businesses that would take another K8.7 billion.

“We are looking at ways to drop costs so that at the end of the day we fully go digital. This includes the business processes. We are looking at bringing new products including digital finance,” he said.

He then rated the firm’s business position as a mixed bag, saying it has been disrupted by emerging technologies from transmitting 11 million pieces of mail to 1.5 million pieces of mail at present.

However, during a recent Public Sector Reform meeting, Vice President, Saulos Chilima, emphasised that the government will not go into the habit of bailouts of institutions that fail to perform.

He indicated that as a business, MPC must make money and meet their statutory obligations without fail.

Chilima further wrote on his facebook page that: “the four key projects in the MPC turnaround strategy, namely cost reduction, postal network restructuring, automating business processes and growing revenue through introduction of post bank and digital finance services is the way to go if MPC is to remain relevant in a digital world.”

“However, it was worrying to note that MPC has not made profits since the unbundling 20 years ago but instead it has accumulated debts amounting to K1.6 billion in utility bills and statutory obligations as well as K6.3 billion in taxes, Macra levy and licences,” Chilima said.

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