Mzuzu City Council has sealed Mzuzu Auction Floors due to outstanding ground rents.
The auction floors belong to AHL Group which has been experiencing financial challenges over the past five months.
According to a source, all workers at the company have been sent back since the city council has locked the main entrance of the building.
“We came to work as usual only to learnt that Mzuzu city council sealed the place on Thursday afternoon as everyone knocked off,” he said.
Mzuzu Council Public Relations officer MacDonald Gondwe refused to comment saying he was not in office on Thursday.
But another Mzuzu City Council employee revealed that for several times the Council wrote AHL to settle its bills but nothing happened that’s why the council decided to seal the place until the settlement of bills.
AHL Group was recently loaned K6 billion to pay its employees who went four months without pay.
The company is currently planning to lay-off 40 percent of its employees and close some of its subsidiaries in order to get out of trouble.
