State-owned Malawi Schools of Government (MSG) -- formerly known as Malawi Institute of Management (MIM) -- has disclosed that it is battling to pay almost K1 billion debt in pension and pay-as-you-earn (Paye) arrears it accumulated over many years.

Appearing before the Public Accounts Committee (PAC) on Tuesday in Lilongwe, Chief Executive Officer, Jessie Kabwila said the institution managed to pay from the little they had but because of interests the amount kept on accumulating.

"We approached government to assist in paying out the debt once and for all because this came when it was operating as MIM," she said.

In an interview, Kabwila expressed gratitude that after presenting their case, the Parliamentary Committee has showed concern and would like to help to lobby for funding so that the institution continue operating under the laws of Malawi.

PAC Member, Ned Poya said the establishment of MSG is a welcome development although there are huge issues to be attended to in order to move forward.

"We would like to urge government to intervene so that they start MSG on a clean state without debts," he said, adding that this is a rebranding and should start a something new that has accumulated huge debts.

He assured MSG that they will lobby for funds to government so that they pay the debts and be able to operate under a new brand.