Some shareholders of Malawi Stock Exchange-listed companies are finding it hard to access dividends purportedly because their accounts at Alliance Stockbrokers Limited were transferred to other stockbrokers without proper notification.
Alliance Stockbrokers Limited was a subsidiary of Alliance Capital Limited (ACL), which collapsed in 2022 and is undergoing liquidation.
issue a statement
In an interview on Thursday, one of the equity investors Bernadette Maere, who used to buy shares using Alliance Stockbrokers Limited, said it has taken two years to trace some of her accounts after the closure of the firm.
She said a lot of energy has been put on investors who invested their money with the investment management firm while those on the stockbrokers’ side were not being updated on what is going on.
Maere, a member of Minority Shareholders Association of Listed Companies, said: “What we want is information sharing because after the closure of the company, I learnt that the accounts were transferred to other stockbrokers, but the shareholders were not communicated about the development.
“I had to write several e-mails for two years and I just traced some of my accounts last month, but I still can’t trace another account with 200 000 shares worth about K17 million.”
Her sentiments come at a time the Reserve Bank of Malawi (RBM), liquidator of ACL, on Friday concluded engagements with ACL investors after the regulator received a forensic audit report on the collapse of the company.
At the meeting in Blantyre, RBM indicated that ACL collapsed because of fraud that was happening within the company, adding that some officials of ACL were buying property using the investment firm’s money while some unsecured loans were given out.
One of the investors who attended the Blantyre meeting, Sydney Jere, said they were told that ACL has K20 million liquid cash available, which will be shared to investors after completion of liquidation together with the assets proceeds.
RBM spokesperson Mark Lungu said in an interview on Thursday that central bank governor Wilson Banda will issue a statement on what transpired upon completion of the meetings.
Capital Markets Association of Malawi president John Kamanga said he is yet to be updated on the contents of the forensic report and therefore cannot comment.
The firm owes about 233 organisations and individuals in excess of K24.7 billion and was failing to pay their maturing investments; hence, the decision to liquidate it.
Out of K24.7 billion, about K11 billion is owed to State agencies.
Export Development Fund is the highest owed firm at K6.9 billion followed by Malawi Communications Regulatory Authority at K1.2 billion. Malawi Electoral Commission is owed about K800 million.
Other State firms owed are Malawi Energy Regulatory Authority, Malawi Blood Transfusion Services, Malawi National Council of Sports and Agricultural Development and Marketing Corporation.
ACL 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
