Mec drags alliance capital to court
The Malawi Electoral Commission has dragged to court investment and portfolio management firm Alliance Capital Limited in an effort to recover K700 million which the electoral body invested in the company. “From the commission’ s side is just the demand that Alliance Capital Limited should repay the full sum due. Alliance Capital has filed what we call an…
By Samuel Kalimira
The Malawi Electoral Commission (Mec) has dragged to court investment and portfolio management firm Alliance Capital Limited (ACL) in an effort to recover K700 million which the electoral body invested in the company.
Mec lawyer David Matuka Banda confirmed the development yesterday, saying the decision to sue ACL was arrived at after the electoral body realised that it was facing difficulties getting back its investment.
Banda said the firm had filed an admission of liability in which it is asking the court to allow them to pay back the money in instalments within a specific period.
The legal counsel said both parties were waiting for the court’s determination on the matter.
“From the commission’s side is just the demand that Alliance Capital Limited should repay the full sum due. Alliance Capital has filed what we call an admission of liability, where they are saying they are liable to pay back the money. Now the court will determine how the company will be paying and over what period,” Banda said.
Alliance Holdings Limited is the parent company for ACL and its chief executive officer (CEO) Christian Majavina yesterday told The Daily Times that they were hopeful that the matter would be resolved within two weeks.
He, however, referred us to ACL CEO Andrews Kayawa for minute details. Efforts to contact Kayawa proved futile as he did not pick his mobile phone.
Mec Chairperson Judge Chifundo Kachale indicated, in his new year message, that the electoral body wanted to use the money for activities under constituency demarcation exercise.
Kachale said costs for the exercise were pegged at K1.2 billion, further indicating that the government had released K900 million for the task. He said the deficit was to be covered by the money they invested in ACL.
“There is a funding gap to complete the [exercise of] demarcation…. The initial budget for boundary exercise for 2021-22 was K1.2 billion and the government committed and funded K700 million. The difference of K500 million was supposed to come from investment with Alliance Capital.
“However, the money has not yet been given and the commission has taken matters to court to force Alliance Capital Limited to pay,” Kachale said.
Recently, Public Accounts Committee Chairperson Ned Poya said Pac expected Mec to claim the money with interest because it was invested for business.
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