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Press Trust, one of the shareholders in Namiwawa Hotel, said on Thursday it is disappointed that the project has stalled when it invested millions of dollars to get returns.
Executive Secretary Clement Chilingulo said on Thursday the trust, which owns 18 percent of the company, pumped in US$1.2 million as share capital.
“The hotel is taking too long to complete. We would like to see the hotel completed because like any other investor we want a return on our money,” said Chilingulo.
Malawi Development Corporation (MDC)—an investment arm of the government— with an 82 percent stake and a US$5.5 million investment has over the past year refused to explain its failure to finish the hotel scheduled to open seven months ago.
Sources say the parastatal diverted funds meant for the project to other unbudgeted activities but officials maintain nothing was wrong.
The hotel, whose construction work started last January and was expected to end this January, hit ground in November last year when MDC faced a walkout by its main contractors SR. Nicholas after the statutory body failed to pay for the work done.
So far, only the concrete and brick work on the 145-bed hotel is up and plaster has been applied to the structure, fitted with window glasses.
The delay to complete the hotel is a severe blow to the economy as it was touted to boost tourism and bring in foreign exchange earnings, local business promotion and employment opportunities in sectors connected with the tourism industry.
The five-star hotel, which was to be managed by Legacy Hotels and Resorts of South Africa, has been financed by the Development Bank of Southern Africa (DBSA), PTA Bank and Stanbic Bank.
DBSA told Nation Online in July this year it was considering a loan application by MDC to complete the project.
The bank said it would assess the completion costs, funding options and price additions, before making an investment decision.
Sources said this week there is a strong possibility DBSA will approve the application as it would make more business for the project to be completed than abandoned. DBSA gave 30 million rands as initial loan.
MDC officials could not be had for comment.
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