AFRE proposed AGM and Extraordinary General Meeting

The ZSE, SEC and Commissioner of Insurance Pension and Provident Funds has issued a notice to investors, insurance policyholders, pension fund members, depositors and other stakeholders relating to the above mentioned proposal.

The regulators have resolved that the meetings be deferred despite the Chairman of AFRE's insistence that the proposed meetings shall proceed on the 23rd in disregard to the ZSE letter (dated 9 September 2011) deferring the same.

The issues that the regulators insist are resolved first, include:

• √¢‚Ǩ¬¢ The completion of the investigation into the affairs of AFRE and its subsidiaries that has been instituted by the Insurance and Pensions Commission ("IPEC"). The regulators believe that the findings will have material implications on corporate governance, the suitability and probity of some board members and senior management among other issues. The ongoing investigations are said to be following a preliminary one at AFRE and its IPEC regulated subsidiaries which indicated serious irregularities including potential prejudice to pension fund members and policy holders.

• √¢‚Ǩ¬¢ The completion of an investigation by the regulators into the publication of three different sets of accounts by AFRE.

• √¢‚Ǩ¬¢ A decision on the propriety of the current AFRE Chairman continuing in that position in light of the allegations that he is in a conflict of interest situation.

The regulators have noted that they reserve the right to take appropriate action if the proposed AGM and EGM are proceeded with.