By MUKWIMA CHILALA
The Drug Enforcement Commission (DEC) is investigating the Industrial Development Corporation (IDC) over its alleged financial irregularities in the acquisition of shares into Marcopolo tiles Company.
In August 2020, the IDC, NAPSA and Workers Compensation Fund Control Board (WCFCB) partnered to acquire shareholding of 49 percent in Marcopolo Tiles at a cost of US$ 44.8 million following a comprehensive due diligence and independent valuation.
IDC’s shareholding in Marcopolo Tiles is 22.61percent, while NAPSA and WCFCB acquired 16.39 percent and 10 percent respectively.
IDC Group Chief Executive Officer, Mateyo Kaluba earlier said that the US$44.8 million payment by IDC, NAPSA and WCFCB was made to Marcopolo and to the original shareholders to buy off the 49 percent shares and for expansion of the company not as a bribe.
He said the valuation was transparently done by independent profes¬sionals before the corporation bought shares.
The enterprise valuation of Marcopolo Tiles Company Ltd done by the experts was $127.5 million while our pur¬chase consideration was at a discount of 28 percent follow¬ing successful negotiations.
“Further the net asset val¬uation of the company was $207.1 million which means that we negotiated a 56 per¬cent discount when compared to the agreed consideration,” he said.
Mr Kaluba explained that the investment opportunity was received by the IDC by way of direct invitation to consider the prospectus that was of¬fering up to 49 percent shares of Marcopolo Tiles Company Limited.
DEC Public Relations Officer, Mathias Kamanga however said that the Commission was actively conducting investigations involving Marcopolo Tiles over some alleged financial irregularities
Mr Kamanga said that investigations were still on going and that the public would be informed once the inquiry had been concluded.
‘’The Drug Enforcement Commission is in receipt of your press query on whether the Commission is conducting investigations involving Marcopolo Tiles. We wish to confirm that the Commission is actively investigating some alleged financial irregularities at the said company. Investigations are still on going and the public will be informed once the inquiry has been concluded,’’ Mr Kamanga said.
And when contacted over the probe, Mr Kaluba advised to send a Press Query through Company Corporate Affairs Manager Namakau Mukelebai who could however not respond to the query by press time.
