A recently released Annual Economic Report has shown that parastatals have been posting losses in the first half of the financial year 2019 to 2020 ended December 31, 2019. Posting the most losses, the Agriculture Development and Marketing Corporation (Admarc) and the Blantyre Water Board (BWB) topped the list.

Figures on the report show that Admarc had recorded a loss of K3.8 billion while BWB recorded a net loss of K3.2 billion. The report this year only echoes the report last year, as the 2019 Annual Economic Report said that parastatals have had their working capital negatively impacted, after a worsened liquidity position. Figures on the report showed that by December 2018, Blantyre Water Board (BWB)’s liquidity position continued to be weak and below desirable levels at a ratio of 0.37:1, meaning that the board was still unable to cover its current liabilities as they fall due.

The same report, compiled by the Ministry of Finance, Economic Planning and Development has showed that parastatals underperformed in the 2018/19 financial year that ended on June 30. “Performance of most statutory bodies still remained subdued largely due to unfavourable market and operating environments for various products and services,” reads the report in part.

Almost half a decade ago, government instituted reforms in over 40 State-owned enterprises, but the parastatals are failing to devise new revenue streams and improve efficiency because the reforms are yet to translate into action.