Monday, June 24, 2024

I am not dissolving LSA Group-Lawrence Sikutwa

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Lusaka Businessman Lawrence Sikutwa has reacted to an exposé carried by Lusaka Times on the dissolution of his LSA Group of Companies stating that the Group is still intact with no plans of dissolution.

In a statement released late on Friday, Dr Sikutwa maintained that the LSA Group is still intact and that there no plans to dissolve it adding that it shall remain a flagship investment company in Zambia.

He stated that the article regarding the dissolution of the company is factually incorrect and refuted the assertions.

Dr Sikutwa however admitted that some subsidiaries under the Madison Finance Group are facing some challenges but said plans are underway to resolve the challenges.

He admitted that it was resolved that the shared services that were provided by the LSA Group to Madison Financial Services be stopped following the restructuring and rationalization of the Group on May 1st 2020.

“I do admit that some subsidiaries in the MFS Group face some challenges brought about by a number of reasons including the widely reported situation in Madison Asset Management Company (MAMCO). Rest assured that the said challenges are firmly being addressed so that they are resolved to ensure the businesses adapt, restructure and continue to thrive in the new normal,” Dr Sikutwa stated.

“In this regard, efforts include, capital raising, seeking new partners and rebuilding trust. Corporates do face up and down business and we are no different but it would not be appropriate to delve into operational matters of the MFS subsidiaries suffice to state that all stakeholders involved are working together to ensure that the challenges are overcome.”

Dr Sikutwa said he is confident that with the support of the general public, the government and relevant stakeholders, Madison will forge ahead and remain a successful indigenous Zambian group.

Below is the Full Press Statement

LSA Group of Companies Solid

There has been an article in the Lusaka Times an online publication dated 15th May, 2020 which went viral, captioned “Lawrence Sikutwa dissolves LSA Group as the financial situation worsens at Madison”. The said article states that I have dissolved the LSA Group of Companies for reasons stated therein. I wish to inform the public and concerned stakeholders that the article is factually incorrect and I take this opportunity to refute the assertions and advise that the Group is intact and not under any consideration for dissolution.

Let me clarify that Lawrence Sikutwa and Associates Limited (LSA) is a Company that has investments in a number of entities in various sectors of the economy. Among them, LSA is the largest investor in Madison Financial Services Plc (MFS) a company which is publicly traded on the Lusaka Stock Exchange (LuSE). It is therefore inconceivable that LSA would dissolve when it has a significant stake in the only indigenous financial services group in Zambia.

MFS Plc is the holding company of the Madison brand which has a number of businesses in the financial services sector including Madison Life Insurance Company Ltd (MLife) and Madison General Insurance Company Ltd (MGen). The subsidiary companies of MFS are independent of each other and are run as such save for the fact that they have a common shareholder, MFS. Before the Madison Group went public in 2014 LSA offered shared services to its subsidiaries and continued to do so thereafter. However, in 2019 MFS resolved that the shared services to the subsidiaries would be provided by MFS hence the restructuring and rationalisation which occurred at LSA resulting in shared services being provided by MFS effective 1st May 2020. MFS employs about one thousand (1000) people.

I do admit that some subsidiaries in the MFS Group face some challenges brought about by a number of reasons including the widely reported situation in Madison Asset Management Company Ltd (MAMCo). Rest assured that the said challenges are firmly being addressed so that they are resolved to ensure that the businesses adapt, restructure and continue to thrive in the new normal. In this regard, efforts include; capital raising, seeking new partners and rebuilding trust. Corporates do face up and down business cycles and we are no different but it would not be appropriate to delve into operational matters of the MFS subsidiaries suffice to state that all stakeholders involved are working together to ensure that the challenges are overcome.

I am confident that with the support of the general public, the Government and relevant stakeholders, Madison will forge ahead and remain a successful indigenous Zambian Group and that “Madison”, a proudly Zambian brand, shall continue to be a market leader competing favourably amongst internationally affiliated peers in the financial services sector. I, therefore, look forward to our valued customers; business partners and stakeholders continuing to support us as we strive to push forward the economic development agenda of Zambia.

In ending, I categorically state that there are no plans to dissolve LSA, it shall remain a flagship investment company in Zambia.

Lawrence S. Sikutwa (Dr)
EXECUTIVE GROUP CHAIRMAN

15th May, 2020

However, highly placed company sources have maintained that LSA Group has ceased to exist and all employees who were under it have either been infused into other Madison companies or have been laid off.

They have since urged Dr Sikutwa to come truthful and not hide behind the difficult nature of the business units.

“As we speak, the workers working for LSA have been taken over by other Madison companies while some have been laid off. We ask him to refute that fact also,” the sources said.

21 COMMENTS

  1. The writer clearly has ulterior motives and are ignorant. They do not know what a dissolution of a company is. What s/he is referring to is an organisational restructuring which is expected if a company wants to streamline or manage costs.
    Secondly what is wrong with Madison Life deciding not to pay commissions on unremitted premium income? It’s only rational and every business is doing that, it needs to do that or else it runs out of cash.

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    • Most the in remitted premiums is from govt , this is a challenge not only for insurance companies micro finance companies and other institutions are not getting remittances from (PMEC )civil servant deductions, some loan institutions at one point even stopped giving out loans as a result of this, the govt should do their part to by making sure whatever they deduct from employees is remitted on time to rightful business organizations, it’s the only way you can also keep these organizations afloat , economic wise that’s the right thing to do.

  2. The problem with some people is that they suffer from PHD syndrome- pull him down. I wouldn’t be surprised if that article from yesterday was done by a diasporan. After all majority of bloggers here are angry diasporan with ulterior motives

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  3. Rapid capital expenditure done almost concurrently and without reference to trends in the economy can lead to shortage of cash. Appreciation of those u stood with during formative years and not jettisoning them is a great plus in business. Yes, businesses do go through a bad period and if remedial decisions are taken timely, recovery is possible.

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  4. Typical of internet journalism, why did you publish without getting facts from Lawrence Sikutwa? I roasted the man without knowing the reality, poor LT and its agents. I’m sorry Lawrence!

  5. Sikutwa did not walk alone whn he was starting out in his entrepreneural journey. He knows this very well and he knows that there are others who know.

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  6. The LSA – Madison Group has been one of Zambia’s Pride in Business and Success stories. My personal position is that when Zambian business(es) that have had an immerse sustained impact on the economic and social pyscho structures of our daily lives , literary, as a nation, such as the LSA Group and the Madison ‘Brand’ has had, must be supported and protected.

    In my view, the LSA Group and the Madison ‘Brand’, with supporting an “eco-system” of at least :

    (1)1,000+ direct employers;

    (2) 3,000+ potential family (nuclear) support structure (assumptn @ 3 children per employee);

    – * 2,000 an additional non nuclear family members support.

    (3) 2,000+ indirect workers per employee i.e. helpers, nannies , maids, gardeners etc (assumption @ 2 per employee);

    (4) 4,000+ -…

  7. The Post was a viable business wth many employees but it was thrown under the bus. It’s tax affairs and statutory deductions were better than those of govt-owned media businesses.

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  8. Thank you for the clarification. Companies need to be transparent so that they avoid rumours and misintepretations

  9. Let’s hope that LSA are above board and not running a Ponzi like operation, conning people with a fake structure where in reality there really isn’t capacity to pay off it’s services like insurance. If Madison is ailing and it underpins most of LSA then there is cause of concern and caution.

    I wonder whether the statement that the SEC authority had tackled Madison and restricted it’s activities was correct. Because SEC is very diligent in controlling financial threats and will not let any international finance company pose a risk to it’s clients. Since 2008, they have been very tough on financial crime and monitor risk actively.

  10. Why LT has raised so furious to bring down Lawrence Sukutwa?? You never do this to that Nigerian of cement Dakote.
    Why is Zambians don’t like each other?

  11. Lusaka Times, this is a shocker story to readers of on-line news of LT that boarders on public confidence in your source of news. The general public deserves apology from yourselves as LSA has categorically denied the news that appeared on 15/05/20 on LT site. The news was not only misleading to the general public but creates an impression that your journalistic source of news can not be relied upon as authentic. We would like LT to make a comment whenever, news that turns out to be false be clarified and followed by re-publishing the true story as you have done.

  12. Surely the govt shd come in and bail out this good local company than let it struggle. One man in the name of mr sikutwa has surely done alot to have a company of that size. Pliz pliz let govt help him .private cos in developed countries get help frm their govts

  13. Kikikikikiki…….FAKE KZ has failed to articulate on this one…No data…The issue is too technical for you… Kikikikikikiki…….And this is the guy who defends anything PF…. PF as intended by Micheal Sata has a very good manifesto. Problem is that it has been hijacked by Mafiaso (Including MMD chancers like myself)…So looks like only alternative is this Bally i hear about. Hope he has assembled a good time?? Problem is that we dont have a THIRD FORCE…..Zambia KUWAYAWAYA FYE MWE

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  14. Pipo, Sikutwa is a crook just like Mahtani of Professional Insurance is). Both owe millions to ZRA for unremitted withholding tax on brokers commission, 240 million each on transfer pricing. Wait for ZFI ( Sikutwabtax evasion mechanism shell company in Mauritius) called meeting on 18May to sell off Madison Life and Madison General.
    These crooks by bribing government officials and helping corrupt brokers like Hayden Mwiya of Marsh build mansion beyond his salary and facilitating Indian, Chinese and Australian hegemonic companies to externalise millions of dollars have done the maximum damage to Zambian owned Insurance companies. No pity on these two colored thugs.

  15. Employees at Madison and it’s other entities better start applying for jobs elsewhere for their own wellbeing. We’ve seen companies collapse and this is how it starts. First as a rumour which is dispelled then next thing a company goes into receivership. Pull out and get your benefits now!!

  16. We need capital partners to join employees in buying the company as a management buy-out, the same way Sikutwa himself acquired Madison Insurance Co from the Meridien BIAO liquidation. We hv reached a stage in Zambia where we cannot afford job losses. Look , I understand this this thing well. There are implications on whether we can hv a peaceful existence as a people.

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