By Isaac Salima:
Attorney General (AG) Thabo Chakaka Nyirenda has said government is consulting relevant authorities on the issue of former Shire Bus Company employees’ K8.1 billion shareholding claim.
The ex-employees wrote the AG’s office expressing concern over the authorities’ silence regarding their claims.
The government-owned Shire Bus Company Limited was liquidated in 2007 and, according to the ex-employees, prior to the liquidation, the government owned 85 percent of the company while the workers held 15 percent of the shares.
The former workers claim that the liquidation process was mishandled, citing the availability of some assets, some 24 years after the company was liquidated.
The ex-employees are seeking 15 percent of the share value related to outstanding assets.
In a letter to the office of the AG, the employees argue that the matter was raised with the Public Private Partnerships Commission (PPPC) in 2022.
“The matter has been pending with the PPPC since 2023 due to the fact that the surplus assets in question are involved in a court case between the government and the National Bus Company, which is now awaiting judgement.
“The PPPC has recently written to us advising that the matter be referred to the Ministry of Justice and the Ministry of Finance for corrective action,” the letter, signed by the ex-workers’ representatives, namely secretary Maclean Chembezi and chairperson C. Kambalame, reads.
The former employees are urging the authorities to revalue all surplus assets and pay out the claimed share value of K8.1 billion to approximately 1,200 workers.
Chakaka Nyirenda confirmed being in receipt of the letter.
“Yes, I can confirm that I have got the letter and I am engaging the liquidator and, once I get concrete feedback, I will be able to revert [to you]. I can also confirm that I had a meeting with one of their [ex-employees’] representatives,” Chakaka Nyirenda said.
The shares are said to have accrued from revenue, rentals and interest from 2007 to 2024.
The assets were sold to National Bus Company but the former employees claim that they did not receive any proceeds of the transaction.
The AG is on record to have assured the ex-workers that he would assist them in obtaining their shares of assets, including bus depots and houses that were once owned by the defunct company.
Currently, the government and National Bus Company are in court, where they are battling over how the latter took control of the company’s properties, which include houses and depots such as Wenela, Lilongwe, Kasungu and Mzuzu bus depots.
The High Court of Malawi’s Financial and Economic Crimes Division, which was hearing the bus depots case, concluded hearing early last year.
The AG’s office took National Bus Company, owned by business mogul Leston Mulli, to court for the alleged illegal acquisition of bus depots and workshops that previously belonged to Shire Bus Company before its liquidation.
The government repossessed the depots and workshops.
In two separate judgements, the court ordered that the facilities be returned to the government.
However, Mulli maintains that the government transferred the depots and some land to National Bus Company after taking over Shire Bus Company.
However, the AG’s position has been that no land transfer occurred.
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