Lusaka based financial analyst Maambo Hamaundu has explained that the repossession of Madison Assets Management Company by the Securities Exchange Commissions – SEC is a sign of how local Zambian companies are struggling to Survive and comply with the regulatory rules due the current economic hardships and is a signal for proactive cost cutting by market players.
The Securities Exchange Commissions – SEC had on March 2nd 2020 temporarily taken possession of the affairs of Madison assets management company for breaching the securities act.
Hamaundu told the Zambian Business Times – ZBT in an exclusive interview that it is the nature of businesses listed on the stock exchange to comply with the rules and regulations provided by the commission, failure to which, the commission take action to protect the public interest.
He said the commission’s decision indicates that there is a problem in the way business is being managed by Madison hence the need to ensure confidence is returned on the stock exchange market.
Meanwhile, Hamaundu added that many private owned companies are struggling to survive under the current economic hardships hence has urged the commission to deal with the matter consciously and in a balanced way so that investors don’t loss out completely.
“The country is currently going through economic challenges and most businesses are being affected, hence it is time for companies to figure out on how to fit in within what is obtaining on the market by adopting a strategies of controlling their costs,” He said.
He re-iterated that the current economic challenges should be an eye opener to private owned companies and look at how to utilize the available resources within the company by cutting down on unnecessary costs in order to survive.
“You need to think around how a company can survive in these hardships, look at the resources available and begin to evaluate depending on what you have within the company. The decision to cut costs is always hard to make but it has to be done to ensure the company does not collapse completely and cause loss of jobs” He added.
