The Securities and Exchange Commission has temporarily taken possession of Madison Asset Management Company Limited with effect from 2nd March 2020.
The SEC’s objective for taking the supervisory action is to ascertain the state of affairs of MAMCo, safeguard the interests of the investing public and ensure compliance with the securities act.
The possession of MAMCo will be jointly managed by Mr Abraham Alutuli and Sibajene Zulu, the SEC appointed Joint interim Managers.
This is according to a statement issued by Securities and Exchange Commission Chief Executive Officer Philip Chitalu.
And Economist Chibamba Kanyama has warned that the repossession of MAMCO if poorly handled, has the potential to cause the contagion effect in the country.
“MAMCO is where a lot of people, including retired military generals, staked their whole pension packages. MAMCO was offering very attractive returns but SEC later ruled that the company was not authorized to deal in the Fixed Income Fund,” Mr Kanyama stated.
“MAMCO is currently insolvent, meaning it has less assets compared to what it owes, including for investors. This situation has potential to mess up people’s lives in a very very big way,” he observed.
Mr Kanyama has since appealed to the Commission to apply a lot of thought in the exercise.
“My appeal is that a lot of thought will need to be applied by SEC. People should not lose their money. If poorly handled, the repercussions will have the contagion effect, impacting on nearly all private schemes in the country.”
He added, “Let us protect the investors and if possible, ask the shareholders of MAMCO to pump in new capital as earlier requested so that MAMCO is a going concern.”
The signs have been there for years but why it took so long to protect investors, only God knows.
Whn the economic situation is unfavourable, it means that economic units will themselves not be healthy. After all the economy is itself made up of individual economic units. Strictly speaking, there’s no such thing as the economy. Only individual economic units exist and collectively these economic units are called the economy. It would be absurd to hv an unhealthy economy but healthy economic units. It’s that simple. At present the truth is many economic units are having it hard. No wonder looking for a job is so difficult. In a money economy, we’re all connected in some way.
You want investors to pump in money in a failed business Kabamba Chinyama? Is it because the owner is Tonga? You’re the dude who told good stories about how successful Chilala Constain was only to discover that all the poor dude had were loans leading to him Losing his farm and Chimsoro Milling from Loan Sharks. Fuool
Mwibala things!
The Unraveling … watch the CEC debacle unfolding as well.
If an acquatic creature in a lake dies due to someone having poisoned the lake, u don’t blame the creature but the person who poisoned the lake. That’s where we’re with many economic units that are having it hard.
And we want to encourage people to invest in Zambia like this. This is among the many ways Zambian poor people have lost their monies. We had Meridian bank in the 90s it’s was just liquidated and pensioners lost all their monies and no one was there to stand for them.
We then had Kwachamania, which excited a number of people after winning a few monies. During the grand draw we only heard it’s been liquidated because of lots of nkongole. No one stood up for people. We now have this. Zambia sure, this self acclaimed Christian is very evil to the core. A real killer of people’s dreams and future.
We had also one man now very well respected who for 27 years everyone who retired went to the village empty handed and lived under abject poverty in grass thatched houses and condemned to…
When investing in a fund, most important aspect is to look at the track record of the Fund Manager and how well the fund has performed in the past. If the investor is unsophisticated, Independent Financial Advisors step in and advise appropriately. Having said that, I doubt Mercedes Mwansa has any track record as Fund Manager. I know her as an Auditor before she was transitioned to run MAMCO. these are lessons for the Regulator and investing public.
…. hard labour in the name of go back where you came from and farm. My beloved country you are so good but you have produced a number of unfair children. Anyway we thank God we are breathing hmmmm but a better life is better than breathing mumatipa
When I listened to the audio purported to be from one of the affected retired General, I almost cried. I couldn’t eat.
Where’s the video?
Too often in Zambia business managers want to ignore economic indicators from the macro-economy. They should never be ignored. They constitute the operating environment. Key decision makers need to meet regularly and evaluate key economic indicators and assess what they mean for your business. You particularly need to ask yourself this question: If this is the level and direction of this indicator, does it make sense to invest in this asset?
Chabipa sure. This is really not good. We as government will fight to try and secure especially army workers pensions and future livelihoods. We will be looking to commission an investigation into the events that led to this. Be assured. Kz
This is a catastrophe. I know some former defence force personnel who stashed their pensions in this company. How did Lawrence Sikutwa let this happen?? This situation has terrible social implications.
This is long overdue,signs and symptom where there that’s why some on us we withdrew our contribution when we saw poor management. I walked for three weeks to have my own contribution paid
Too many thieves in Zed, especially Educated ones!
So sad for retirees who risk all their money and only to loose like this? It’s painful!
We will soon discover that Uncle Sikutwa was running a Ponzi scheme. Watch this space…
Amazing hw people don’t know that the PF created the toxic economic environment that has made doing business difficult. Signs hv always been there. The PF doubled the national budget in their second yr in office. The civil service payroll was rising every month because Sata was creating districts out of the blue, appointing DCs, buying them brand new vehicles, giving them airtime and free housing and embarking on building district offices, houses etc. All this from borrowed money. It became too much, interest rates started rising and business became difficult.
This is terrible I have many ex colleagues who have savings with this Asset Management firm. This will completely affect confidence in people saving with any financial institution and ultimately will mean less cash for investment for the private sector, very sad situation.
Uncle Sikutwa has built his empire on sand dunes, with cutting deals with political elites. His whole group is in shambles. All his companies are INSILVENT, without any exception. Madison group owes ZRA over 8 billion Kwacha as transfer pricing penalties, withholding tax on brokers commission runs into 256 million. Run everybody before the ship sinks.
Early bird to fly out of Ponzi best will recover some.
Watch next one to go HH’s Sanlam Life that has been trading with K4 million capital while minimum capital requirement is K22 million. It has transfer pricing penalty of K240 million and non-remittance of withholding tax to ZRA of K292 million for last 8 years.