Chaos: Parastatals run dry of salaries


Several parastatals have revealed that they will not be able to pay employees their salaries in time because the companies do not have enough money.

Admarc, AHL Group and Airport Development Limited (ADL) have informed employees that cash flow challenges will lead to a delay in salaries for the month of September.

ADL’s letter by chief executive officer Rhoda Gadama Misomali dated September 25 says the reason is cash flow challenges.

“Please be advised that Management is working tirelessly to ensure that the salary payments are made,” Misomali said.

In a circular on 28 September, ADMARC Human Resources Manager informed employees that the company is experience cash flow constraints and salaries will be delayed.’

According to Mchembe, the company’s management is exploring means to source finances for payment of salaries at an earliest opportune time.

AHL Group’s administration executive LK Gomani, in a letter dated September 30, said the delay is due to delay in expected receipts into the company’s accounts.

According to Gomani, subsidiary companies of the AHL Group are supposed to be making salary contributions to the parent company but this has not been happening due to under-performance hence the parent company is now supposed to provide salaries for the entire group.

“In addition, tobacco volumes for the 2020 season dropped significantly to the extent that management has had to look for other means to sustain various business activities. Please be assured that management is tirelessly working on the issue so that salaries are paid as soon as possible,” said Gomani.