|
Liquidation of Shire Buslines |
|
|
|
|
Shire Buslines Limited was established in 1947 under the British Protectorate Administration of Nyasaland and operated its first service on 12th May, 1947. The company has been in operation for 59 years and during this period it has undergone a number of changes in the shareholding structure. At present, the Government of Malawi holds 85% of equity and 15% is held by employees. Since 1997, the company has been undergoing continuous restructuring in order to realise better efficiencies against a backdrop of a de-regulated and overly competitive market. The major challenge facing the company is inadequate capital to finance the aged fleet of buses. As a result, the company has struggled to realise adequate profits in recent years.
In 2005, the Government of Malawi, through the Ministry of Transport & Public Works, sanctioned a high-level review of Shire Bus Lines to establish, among other things, the entire route network of the company, highlighting any possible PSO arrangements with Government. The review was to also establish the profitability or otherwise of the business, including an assessment of the environment in which the company is currently operating. The analysis was also to assess privatisation options for the company. Having considered the results of the analysis and the recommendations made in the report, Government decided to liquidate Shire Bus Lines Company. Following a competitive process, KPMG was appointed the liquidator of the Company. |
|
