Some investors have taken to court investment and portfolio management firm Alliance Capital Limited for a breach of contract after the company failed to pay them their dues upon maturity.
Court documents The Nation has seen at the High Court of Malawi Commercial Division in Blantyre show that the investors— Chengaikane Kahumbe, Natasha Kahumbe and Tupali Kahumbe— are claiming K373 513 566.31 plus interest and collection costs from the firm.
The records show that the firm, which provides portfolio and investment management services for individuals, corporates and institutional investors, had a contract with the investors.
The agreement, according to court documents, was that Alliance Capital Limited would invest the money in short-term investments which can be liquidated within a short period.
The investors have submitted that Alliance Capital on December 16 2020, through its acting chief executive officer Gift Banda, committed to pay them by January 2021.
But the investors’ claim filed in the High Court Commercial Division on February 12 2021 indicates that Alliance Capital Limited has not repaid the money and instead proposed to pay a sum of K100 million by May 2021 and the balance between June and August 19 2021.
Meanwhile, the matter came before High Court Commercial Division Judge Michael Mtambo yesterday where the investors through their lawyers pleaded with the court to order the defendant to pay the whole amount by March 15 2021.
The judge has asked Alliance Capital Limited lawyers to submit their written submissions by March 19 2021 and that the court will give its judgement on March 23 2021.