Investors not impressed with ACL investigations pace
Alliance Capital Limited (ACL) investors expressed frustration with the pace at which the Reserve Bank of Malawi (RBM) is investigating the matter despite the bank saying forensic auditors Baker Tilley presented a draft report.
One of the investors Jimmy Korea Mpatsa who lost about K2 billion when the firm collapsed, resulting in investors losing almost K25billion of their investments in 2022, said this following the RBM’s update that says a consultant that was hired to do forensic audit, Baker Tilley presented a draft pending the actual report.
In a statement, RBM governor who is also the liquidator of ACL said: “The terms of reference for the assignment included tracing of assets available for liquidation as well as establishing possible commission of financial crimes by shareholders, directors and officers of ACL, and other third parties.
“My office wishes to inform creditors of ACL and other interested stakeholders that Baker Tilly has now submitted the draft forensic audit report. There are, however, still some matters requiring further investigation and receipt of information from third parties.
“Upon receipt of the final forensic audit report, my office will publish the report together with a list of debtors owing ACL and commerce the process of recoveries against the debtors.”
However, Mpatsa who together with five others already sued the financial institutions regulator and ACL directors for failing to secure and manage their investments, said the bank’s process is taking too long.
Mpatsa said: “I have not seen the report, I have just read in the papers about that update but my short reaction is that the regulator is taking too long with its investigations.”
He earlier said although the funds he invested with ACL was personal with his wife Diana, separate from his business, they are being affected because they have not accessed it for two years.
“We are trying our best to recover the funds either in full or in part but the matter is in court now so I cannot comment further,” Mpatsa said.
In a separate interview, RBM Spokesperson Mark Lungu said they decided to release the update regarding the draft report because of the pressure received from investors on the progress of the investigations.
“We are committed to update the concerned stakeholders who have been calling to find out the progress of the audit and this is to say we are almost through with the investigations as we expect to receive the final report within a few months,” Lungu said.
Meanwhile, Capital Markets Association of Malawi president John Robson Kamanga said he will wait until the final report is made public before commenting on the whole issue.
In November 2022, the High Court of Malawi in Blantyre (Commercial Division) ordered that ACL be wound up and liquidated for its shortcomings to operate a well-managed financial institution in the country.
