Parliament discuss Alliance Capital Limited pyramid scam

Offices of the Director of Public Prosecutions and Attorney General will next week commence prosecutions of Alliance Capital Limited.
Minister of Finance Sosten Gwengwe told Parliament on Wednesday that the state prosecuting agencies will prosecute those involved in the plunder and looting of the billions of money at Alliance Capital Limited.
Meanwhile, Parliament has instituted an inquiry to investigate Alliance Capital Limited, a company in which people invested and lost Billions of Kwachas.

Joshua Malango raised questions the pyramid scam
On Friday, High Court Commercial Division ordered that Alliance Capital be liquidated and this was coming at a time individuals and institutions had already lost about K60 billion which they invested in the company.
Among those to have lost are; Malawi Police SACCO which lost K1 billion, Malawi Electoral Commission (MEC) which lost K800 million, Malawi Revenue Authority -MRA that lost K1 billion and Export Development Fund that is said to have lost K7 billion.
And on Monday, Joshua Malango Member of Parliament for Dedza Central East brought the matter in Parliament seeking answers on what government is doing on the issue.
Malango who suspected some criminal activities to have taken place in this whole issue, suggested that government should come in and help those who have lost for them to recover their money.
In his response to Malango’s question, Gwengwe Minister of finance described the Alliance Capital issue as very sad and said an investigation into the matter must be carried to establish what really happened.
He also told the House that Attorney General Thabo Chakaka Nyirenda and Director of Public Prosecutions Dr Steven Kayuni have already stepped in for preliminary investigations to establish if there was any criminal activity that must have led to the Company’s downfall.
One of the victims, Mark Katsonga who is also Minister of Trade said he has lost K65 million which his company invested in Alliance Capital Limited.
He then hailed the House for stepping in to investigate the matter.
A joint Parliamentary Committee consisting of Public Accounts Committee, Legal affairs committee and Trade and Industry committee has been set to inquire into the matter.

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Wisdom Reigns
Wisdom Reigns
1 year ago

More importantly, Parliament should be discussing what RBM was doing when all this happebed. Specifically why they were sleeping on the job, because they were! If RBM aren’t held partially culpable, they’ll continue their slumber. Which means the financial markets will continue to be unruly playing soft dodge ball with a sleepy regulator.

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