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Alba Iulia
Wednesday, February 19, 2020

Madison Financial Services Plc is not closing down, still viable

Economy Madison Financial Services Plc is not closing down, still viable

The Madison Financial Services Group says it is still a viable business.

They have been unverified reports circulating stating that Madison Group recently defaulted on a USD3.5 million guarantee, for which a court Judgement has awarded USD9 million to FNB.

But in a statement released by Corporate Communications Manager Patience Chisanga, the company said it notes with deep concern the publication of false, incorrect and fabricated statements making rounds on some sections of social media about the financial status of Madison Financial Services Plc and its subsidiaries.

“The said falsehoods being circulated by persons with ill intent have gone viral via Whatsapp Messenger and online blogs claiming that Madison is closing down.”

“We would like to state out rightly that these statements which are malicious and meant to harm our group of companies have been peddled for some time by elements who clearly hold ulterior motives for reasons only known to themselves. We wish to state that Madison Financial Services Plc and its subsidiaries are sound going concerns trading normally and will continue to do so,” the statement read.

It said the Madison Group has been growing year on year with revenues on an upward trajectory over the last few years and the trend is expected to continue.

“The Group wishes to assure its clients and stakeholders that despite the challenging economic environment the Group will strive to achieve positive results in 2020 and beyond.”

“We wish to clarify that one of our subsidiaries MGen did issue a financial guarantee to one of its clients in the normal course of insurance business and if the said Guarantee is called upon MGen will perform as the Guarantee is secured.”

It said, “The Madison businesses are in the financial services and therefore are regulated entities and thus operate under the strict supervision of the various regulators. We urge all our customers, policy holders and stakeholders to remain confident in the Group.”

“Madison Financial Services Plc, a proudly Zambian brand remains a market leader competing favourably amongst internationally affiliated peers in the financial and insurance sector. We trust that our customers; business partners and stakeholders will continue to support us as we strive to push forward the economic development agenda of Zambia.”

[Read 1,794 times, 1 reads today]

14 COMMENTS

  1. Excellent. Fake news needs to be seriously dealt with. One way is to regulate it through charging a tax for its usage . I shall be raising this with our cabinet. Kz

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  2. Believed her until she stated that “The Group wishes to assure its clients and stakeholders that despite the challenging economic environment the Group will strive to achieve positive results in 2020 and beyond.”
    There could be some truth to the story….

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  3. Of course there are issues with Madison and this girl tried to do a spin on it but I can see that she inexperienced in Public Relations when she said:
    “We wish to clarify that one of our subsidiaries MGen did issue a financial guarantee to one of its clients in the normal course of insurance business and if the said Guarantee is called upon MGen will perform as the Guarantee is secured.”
    1. There was no clarification at all BUT only denial. She didnt say what the Guarantee was for and how much it was, etc so nothing clarified
    2. She didn’t say exactly what the issue was, and above all, if there was no issue with performance of the Grantee there was no need for her to say it. She only said “MGEN will perform” because MGEN is unlikely to perform and could in fact go into liquidation…

  4. No smoke without fire…and of course they wont accept it til they completely shut down…just the fact that the acknowledged the economic hardship thats a give away statement

  5. When I saw Larry jogging with ECL I wondered what was happening because it’s unlike him. Let him meet the retired Military Officers who are claiming that they’ve lost their pensions which they invested in his business so that they discuss. He has worked hard to build his business and a living example of a good Zambian business mogul. Let’s all support Madison in this trying moment. Madison shouldn’t go down!

  6. Kaizer! we are tired of your comments, you are not the only one to have grown up poor and then by luck and hard work found yourself enjoying some power and priveledge.
    Please stop this inferioroty complex of trying to seem like a big man all the time, I told the President yesterday, I have insured victory, I have directed Lt to bring back this and that, I have an expensive whiskey, I have met *insert all important people who have been in the news here*, I work as director of OP. The last one is a very sensitive job that you shouldnt be dishing out all over social platforms, keep quiet please!
    We know you have made it.

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  7. Madison group is finished.Sikutwa owes Investrust Bank K12 million plus interest, Cavmont Bank K7 million, Atlas Mara K190 million, fixed income investors in Madison Asset Managent K254 million, group suppliers K89 million. Madison General Insurance has been insolvent for the last 5 years, first judgment came in 2015, second in 2018 and final nail in 2019. Who is she trying to fool? Financial guarantee cannot be issued by an insurance company. It is against Banking and Financial Services Act. It is a criminal activity. Supreme Court judges in January 2018 judgment reprimanded Sikutwa and the group. Atlas Mara does not meet capital requirement due to US$14 million it is owed by Madison general, Madison life and Chakaka village, + Sikutea.

  8. Retired army generals have been duped by Sikutwa. He has been declaring dividend from Madison life and Madison general when both companies do not meet solvency and capital requirements. It’s liabilities have been more than assets. The Pensions and Insurance Authority has been sleeping or protecting Sikutea the criminal partaker in Forest land. In addition to what kabwe warrior has mentioned, Madison General, Madison Life and Madison Asset owes ZRA withholding tax on commission paid to brokers of K56 million for the last 7 years. It owes ZRA K720 million transfer pricing evasion of tax by these three companies alone. Government needs money for hospitals and not for London, Mauritius and Continental trips of directors, management and Sikutwa. Just windup the companies and allow staff to…

  9. Madison committed a financial crime that has been tacitly supported by BOZ and PIA. It issued a financial guarantee on behalf of it’s majority shareholder Sikutwa and his fancy company Chakaka Village. Guarantee was issued to Banc ABC ( now Atlas Mara) for a loan Sikutwa got for Chakaka Village. Chabala Lumber the toothless CEO issued it after loan went bad. From all angles it is a financial scam. Against Banking and Financial Service Act, against inside borrowings rules, against insurance regulations. PIA is trying to cover it up. BOZ , the politically infiltrated biased org. has derelicted in it’s duty to investigate Madison General Insurance, Madison Life Insurance, Madison Asset Management, all of them have been conduits to siphon off money from the gullible, from ordinary folks to…

  10. Chabala Lumbwe never got any reinsurance support as it is against insurance to issue financial guarantees and that too to sister company. Madison owes to Atlas Mara K65,000,000 while Sikutwa personally owes K190,000,000 to Atlas Mara. Read supreme Court judgment of 31 January 2018. Now BOZ has to decide to save PF cadre Sikutwa or Atlas Mara Bank.

  11. @ Enock Photo, what about K24 million penalty that Zambia Consumer and Competition Commission has imposed on Madison General? PF funders are being protected by BOZ, PIA and SEC. Thousands of ordinary people are going to lose millions, more the thug Sikutwa is allowed to roam freely, more the financial sector will be damaged.

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