The LSA Group has defended its Group Chairman Lawrence Sikutwa from accusations that he is using his influence in the Industrial Development Corporation Board to make risky business decisions.
Some online reports have indicated that Dr Sikutwa, as a member of the IDC board influenced the board to convert his Madison’s deposits in Intermarket Banking Corporation into equity and have IDC resuscitate the ailing bank.
Other accusations are that Dr Sikutwa also made the IDC to buy a loss making Zam Palm business from Zambeef where he also sits as a board member, raising possible conflict of interest issues.
But LSA Group Communications Manager Patience Chisanga has defended Dr Sikutwa’s record saying his actions have been above aboard.
In a statement, Ms. Chisanga said Dr Sikutwa nolonger sits on the IDC board and that the LSA Group prides itself as being a well-run indigenous Group of Companies with good corporate governance at its core.
She said the Group observes a strict code of ethics and has never and does not seek business support through political patronage nor does the Group resort to underhand methods.
Ms. Chisanga stated that Dr. Sikutwa is himself apolitical and does not belong to any political party and refuses to mix business with politics.
“Professionalism is encouraged across the Group and the young men and women who work in the Group are among the most qualified in the sectors we operate in. We are proud of this. For your information, Dr. Sikutwa was first appointed to the IDC board by our late President Mr. Michael Chilufya Sata on 24 February 2014 and subsequently President Edgar Chagwa Lungu re-affirmed that appointment on 10 March 2015,” she said.
“During his tenure as a member of the IDC Board, Dr. Sikutwa was chairman of the Finance and Administration Committee and under his leadership the committee presided over the drafting and introduction of many administrative policies in the IDC and he remains proud that he chaired the meeting that deliberated on the IDC’s first 5-year Strategic Plan.
That stated, Dr. Sikutwa has no influence whatsoever on the IDC nor does the Group have any dealings with the IDC save for the joint interest they hold with others in the Zambia Industrial Commercial Bank (ZICB), the successor to Intermarket Banking Corporation.”
Ms. Chisanga said that in attempting to rescue Intermarket where LSA was one of the large depositors, the Bank of Zambia offered the large depositors who were caught up in Intermarket a number of options.
She added, “Payment of all depositors up to K200, 000, Corporate depositors with balances in excess of K200,000 could choose between a 40% haircut or conversion to equity provided that the balance was not less than K1 million and residual balances not converted were to be paid within 36 months from the commencement date of ZICB.”
“We chose to convert our deposits into equity on the basis of which the Group took a 6% interest in the new ZICB. A search at the Patents and Companies Registry (PACRA) would reveal the other shareholders in ZICB as the information is public. Further, at the time the issue of the Intermarket Bank rescue scheme was floated by the Bank of Zambia, Dr. Sikutwa had already vacated his seat on the IDC Board. The Bank of Zambia and IDC can be contacted to verify this,” she said.
Ms. Chisanga said the LSA Group would welcome any investigation into its affairs now or in the future.
Below is the full statement
The culture that has developed in Zambia of people purveying false news and making baseless claims is to be regretted.
The author of an article which appeared on 18th March 2018 on one the local news sites about Dr. Lawrence S. Sikutwa and the Madison Financial Services PLC should have made some enquiries to verify facts before publishing the article. An enquiry would have revealed that Dr. Sikutwa no longer sits on the board of the Industrial Development Corporation (IDC).
The LSA Group prides itself as being a well-run indigenous Group of Companies with good corporate governance at its core. Accordingly, the Group observes a strict code of ethics and has never and does not seek business support through political patronage nor does the Group resort to underhand methods. Dr. Sikutwa is himself apolitical and does not belong to any political party and refuses to mix business with politics. Professionalism is encouraged across the Group and the young men and women who work in the Group are among the most qualified in the sectors we operate in. We are proud of this.
For your information, Dr. Sikutwa was first appointed to the IDC board by our late President Mr. Michael Chilufya Sata on 24 February 2014 and subsequently President Edgar Chagwa Lungu re-affirmed that appointment on 10 March 2015.
During his tenure as a member of the IDC Board, Dr. Sikutwa was chairman of the Finance and Administration Committee and under his leadership the committee presided over the drafting and introduction of many administrative policies in the IDC and he remains proud that he chaired the meeting that deliberated on the IDC’s first 5-year Strategic Plan. That stated, Dr. Sikutwa has no influence whatsoever on the IDC nor does the Group have any dealings with the IDC save for the joint interest they hold with others in the Zambia Industrial Commercial Bank (ZICB), the successor to Intermarket Banking Corporation.
If it is the shareholding in Intermarket which raises the notion that there could have been corrupt practices surrounding IDC and the Group, we wish to put on record that in attempting to rescue Intermarket, the BOZ offered the large depositors who were caught up in Intermarket when the BOZ took it over (our Group was one of the large depositors in Intermarket), the following options:
Payment of all depositors up to K200,000.
Corporate depositors with balances in excess of K200,000 could choose between a 40% haircut or conversion to equity provided that the balance was not less than K1 million.
Residual balances not converted were to be paid within 36 months from the commencement date of ZICB.
We chose to convert our deposits into equity on the basis of which the Group took a 6% interest in the new ZICB. A search at the Patents and Companies Registry (PACRA) would reveal the other shareholders in ZICB as the information is public.
Further, at the time the issue of the Intermarket Bank rescue scheme was floated by the Bank of Zambia, Dr. Sikutwa had already vacated his seat on the IDC Board.
The Bank of Zambia and IDC can be contacted to verify this.
Meanwhile, please be informed that the Group would welcome any investigation into its affairs now or in the future.
In future, commentators would do well to contact the undersigned for any information regarding Dr. Sikutwa or the LSA Group of Companies and information will be readily availed. It is therefore unfortunate that the author of the article sought to cast aspersions on Dr. Sikutwa and gave inaccurate and misleading information to the readers to bring the good name of Dr. Sikutwa and the LSA Group into public ridicule.
Let us give credit where it is due.
Patience Chisanga
Corporate Communications Manager
LSA Group of Companies
thanks for clearing the air. lets focus now on business
Its hard to run a successful business in Zambia as elsewhere in the world without significant political patronage for whatever it does. The fact that it is not overt in the case of LSA, it may just be a sign
that their patronage strategies are better than those of others …
Lastly, its nice to have a PhD, worked for or not but why flaunt it?
What does LSA stand for?
It stands for Lawrence Sikutwa and Associates.
I do like Patience Chisanga, she chose her career path very well and she is beautiful and attractive too.
I thank you
Lawrence Sikutwa & Associates
We don’t have reporters anymore. We have gossip peddlers. Some reporter I know makes football reports from a bar counter. He just rings the stadiums where matches have taken place and voila there’s your soccer story.
Its hard to run a successful business in Zambia as elsewhere in the world without significant political patronage for whatever it does. The fact that it is not overt in the case of LSA, it may just be a sign
that their patronage strategies are better than those of others …
Lastly, its nice to have a PhD, worked for or not but why flaunt it?
These are the bussiness leaders lungu should have engaged to form a consortium with all credible universities and engineering associations in Zambia to be the 3rd partner in the RATSA deal over looking our transport system , instead the corrupt thief lungu corruptly gives the 3rd slot to lebanses of lamise …….denying Zambians a chance to drive our destiny……
For Sikutwa to respond means somebody went overboard. Well done for clearing the air. Pity you had to conclude the statement with that last line … I find it patronizing.
The fact remains that Lawrence Sikutwa sat on IDC board and participated in the Zampalm sale to IDC. Secondly the fact is that IDC and Madison are in a joint venture together in Intermarket Bank. Clearly there is conflict of interest in the way Sikutwa has been managing public affairs. The truth of the matter is when there is change of Government, his conflict of interest amounts to abuse of office. If he doesnt see the danger, let him rely on his statement but as for me i would advise him to take note of the Guptas relationship with Zuma and whats happening now rather than him insulting the intelligence of Zambians. Lawrence Sikutwa used his influence to have IDC acquire Zampalm and invest in intermarket Bank this will come to haunt him.
At least it was Zambians and not Indians or Lebanese or chinise who only externalise profits and tax payers monies were not blatantly stolen like in 42/42.
I agree with you 100% @spaka
Ba Sikutwa, your actions amount to abuse of authority which amount to corruption. From the look of things you are applying ubomba mwibala formula. If you are Zambeef Board member and IDC board member, how do champion the selling of 90% shares of Zampalm to IDC against investment guidelines which you approved. Further how do you justify investing jointly with a Government company whose board you were part of. Ba Sikutwa your dealing with IDC will in the near future affect your Madison, mark my words. Corruption is corruption whether it is Zambians or Chinese, Politicians or Private sector. As Zambians we need to condemn such myopic thinking by Sikutwa. Abuse of Office is not only for politicians!!!
Before this statement, i actually thought there is nothing to worry about as the news was fake but now am worried. LSA seems to be in panic mode and there is every reason to be. The State Capture credentials of the Guptas definitely apply to Dr Sikutwa’s dealings with IDC i must say. The best Dr Sikutwa can do to save LSA from future corruption prosecution is to step aside. Just look at how Finance Bank was harassed over Rajan Matani’s dealings with the powers that be or Fred Mmembe over Post. On this one Dr Sikutwa you have blundered big time. You should ve never accepted to play with politicians especially corrupt ones. Whether you say you dont belong to any political party is immaterial, people now think you are a PF financier.
What Lawrence Sikutwa should do is to sue the publishers of fake news rather issuing a PR statement without substance. As things stand Sikutwa knows that his day in court on corruption charges is definitely coming, its just a matter of when and the earlier he realizes the amount of risk he has brought to his business empire the better. The Inter-market Bank saga will burn Madison in future, more so that it includes pension funds from NAPSA and Workers Compensation. No matter how many PR statements are issued, his closeness to politics is bad for his business. Imagine if Kambwili or HH and GBM win, would this statement absolve him or condemn him. On Zampalm and Inter-market Bank Sikutwa hasn’t been very smart but greedy.
So it is true that Sikutwa has been funding PF after all. Anyways we now know why GRZ business has been going to Madison. How much money does one want kansi for this man to be associated with PF. Madison will soon start losing reputable investors as it certainly going to be targeted once PF loses power in 2021.
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Kikiki yaba so its true that every dog has its day. Dr Sikutwa has found himself in serious predicament where he might have to pave way for someone else to take over LSA. The fact that LSA has come to the defence of their Chairman over what they allege is fake online news speaks volumes, they can sense danger ahead and its making their Chairman sick to the stomach. Its not for LSA to declare Dr Sikutwa’s decisions and dealings with IDC above board, he will have his day in court as the writing is clearly on the wall. Dr Sikutwa should know that Madison and IDC joint venture in intermarket bank is abuse of authority. The fact that he and Mutati were on IDC board when these transactions were executed is a red flag. Mutati was in charge of Finance and Boz!!!