Govt ready to revitalise Times
Published On October 29, 2014 » 2042 Views» By Administrator Times » Latest News, Stories
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.Chipampe

.Chipampe

GOVERNMENT is prepared to recapitalise Times Printpak Zambia Limited, the publishers of the Times of Zambia and Sunday Times.
Information and Broadcasting Services acting Permanent Secretary Isaac Chipampe said it was Government’s obligation to recapitalise the company and put an end to financial challenges.
Mr Chipampe said this when he appeared before the Public Accounts Committee (PAC) with Times management to respond to audit financial queries raised in the 2010 to 2012 Auditor General’s report.
Earlier, MMD Mafinga Member of Parliament (MP) Catherine Namugala wondered why the company, which was reported solvent in 2010 and managed to get a substantial loan from a bank, suddenly failed to manage its operations.
“What happened to a company which projected a good financial position in 2010 and managed to acquire an K8 billion (unrebased) loan from abank to purchase a new printing machine but suddenly finds itself in financial challenges?” Ms Namugala said.
This prompted acting managing director Chishimba Chishimba to explain the background of the financial challenges that the company was facing, including debts in unremitted statutory obligations.
The company obtained a loan in 2010, after the then Government assured that the loan would be guaranteed despite the financial challenges.
“The current position is that the institution is making payments to a a number of institutions and retirees and this is exerting tremendous pressure,” Mr Chishimba said.
He said the challenges were beyond the current management team and that the sure way out was recapitalisation by Government, the shareholder.
He said management was doing its best to improve operations amid the challenges and demotivated workers who were waiting to be paid salary arrears.
PAC acting chairperson Mwansa Mbulakulima was optimistic that the current management at the Times Printpak was capable of rising above the financial challenges once Government recapitalised the institution.
Mr Chipampe said the Ministry was aware of the efforts that management at the company was making to turn the situation around such as the introduction of the e-times and other innovations in the strategic plan.
The company’s management appeared before PAC to answer audit queries on non-remittance of statutory obligations and procurement of a printing machine using a loan, which has not been liquidated.

 

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