RBM outlines Alliance Capital winding up process

RBM outlines Alliance Capital winding up process

Reserve Bank of Malawi (RBM), which is acting as liquidator for Alliance Capital Limited (ACL), has outlined steps to liquidate the beleagured investment management firm following a court order last week to wind up the firm.

RBM Governor Wilson Banda said in a statement yesterday that the central bank will first prepare a statement of affairs of the company followed by preparation of proof of the debts against the company.

He said: “All persons who have claims against ACL are, therefore, requested to file their claims with the liquidator’s office and provide supporting evidence within 60 days from today [Thursday].”

The governor has also indicated that the central bank will hold meetings in Blantyre, Lilongwe and Mzuzu with investors of ACL from tomorrow to November 24.

He said they have also engaged a forensic auditor, Grant Thornton Consulting Limited, to investigate ACL’s transactions.

Banda: We will hold consultations

“The liquidator will provide periodic updates in the winding up process of ACL. These updates will be made directly to the creditors or through a public notice,” Banda said.

L a s t Fr i d a y, t h e Commercial Division of the High Court of Malawi in Blantyre ordered that ACL be liquidated after falling short of being a sound financial institution to conduct business in the country.

Meanwhile, the Public Service Pension Trust Fund has dismissed reports suggesting that its members have lost their pension benefits in ACL, saying none of its funds were invested through the firm.

This follows viral posts on social media alleging that the fund has lost its investments in the form of pension benefits following the liquidation of ACL.

A statement from the fund, said yesterday it outsources a number of services such as pension admini s t r a t ion and investment management where the current pension administrator is Zamara Pension Administrators L i m i t e d w h i l e t h e investment managers are Old Mutual Investment Group, Continental Asset Management and Nico Asset Managers.

The portfolio and investment management firm is believed to owe about 233 organisations and individuals, but it is failing to pay their maturing investments; hence, the decision to liquidate it.

The firm owes various businesses, individuals and State enterprises in excess of K24.7 billion out of which K11 billion is owed to State agencies.

RBM-linke d f i r m Export Development Fund is the highest owed K6.9 billion followed by Malawi Communications Regulatory Authority’s K1.2 billion. Malawi Electoral Commission is owed about K800 million.

Other state firms owed by ACL are Malawi Energy Regulatory Authority, Malawi Blood Transfusion Services, Malawi National Council of Sports and Agricultural Development and Marketing Corporation.

In March last year, the High Court of Malawi Commercial Division gave ACL eight days to settle in full K373.5 million owed to one of its clients, a Blantyre-based family.

When ACL issues filtered into the public domain, RBM suspended the firm’s portfolio manager licence for “gross violations of financial laws” for a period of 12 months with effect from March 2021.

In April this year, the regulator applied for the winding up of ACL on grounds that the company is insolvent with its net capital excessively below the minimum regulatory capital requirement of K50 million.

Alliance Capital was incorporated as a private limited company on August 31 2004 as Alliance Investment Limited and changed its name to Alliance Capital Limited on September 30 2006

The post RBM outlines Alliance Capital winding up process appeared first on The Nation Online.

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