Bad governance! PAC hits at Mutharika over Malawi Savings Bank sale

Public Affairs Committee (PAC) has criticised the Peter Mutharika administration of bad governance over the controversial disposal of the Malawi Savings Bank (MSB) against recommendations of the Budget and Finance Committee of Parliament.

Chingota:  Eexecutive arrogance

Chingota: Eexecutive arrogance

The influential quasi-religious organisation has said the Mutharika government has asserted its credentials as not a listening and arrogant regime for going ahead to sell 75 percent of its shareholding in the MSB to Financial Discount House Holdings. at MK 9.5 Billion.

PAC Chairperson, Reverend Felix Chingota has since described government’s conduct on the sale as violating “the very fundamental principles of democracy.”

The grouping fears Malawi is doomed “if Mutharika administration will continue to violate principles like that. “

PAC’s sharp criticism comes after Catholic Commission for Justice and Peace (CCJP) also described government’s conduct on the sale as an assault on constitutionalism.

CCJP executive director Chris Chisoni said DPP government’s determination to push ahead with the sale undermined Parliament’s role and unmasks President Mutharika’s call for more dialogue on the matter as “cosmetic and insincere.”

“There are governance principles which should be adhered to in the process of democracy. The conduct of government on the matter has betrayed that. The issue of accountability and responsiveness role of Parliament has been severely undermined.

“The President called for dialogue and pledged to listen to the voice of Malawians, but before Malawians were given time to exhaust that process, the announcement was made. Parliament, as a representation of the masses, wanted to give an opinion and direction, but the consultations were curtailed immediately. The three (Legislature, Judiciary and the Executive) were supposed to work with each other, what we see now is the betrayal of that spirit and the betrayal of general idea that Parliament is a representation of Malawians,” said Chisoni as quoted in the press.

The opposition lawmakers vehemently opposed the sale of the bank, citing controversy over alleged toxic loans owed to the bank.

They condemned the Executive for lack of transparency on the deal, undervaluing the bank, breaking the country’s financial legislation; hence, described the sale as asset stripping.

But DPP spokesman, who is also Minister of Transport and Leader of government in Parliament, Francis Kasaila said a legal opinion by Malawi Law Society indicated that government is the sole shareholder of MSB on behalf of all Malawians and can decide on what to do with these shares.

Kasaila said the decision of the executive to sell MSB is backed by law.

“The executive has those legal powers to decide and the executive has decided [to sell MSB], “said Kasaila.

Finance Minister Gondwe rejected accusations of executive arrogance.

“This question of being arrogant should not arise,” he said.

Gondwe said if government were to decide to keep MSB, the Reserve Bank of Malawi would have had “some problems” by the accommodation it would be giving to the bank.

“We had to decide very soon. The resources that we are leaving at the Malawi Savings Bank, we would want to buy back, so that we can actually reconstitute our position at the Reserve Bank of Malawi,” said Gondwe.

“This bank is gone, we should know this.”

Gondwe stressed that the wholly-owned government financial institution “is not there anymore, that is what it is.”

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50 thoughts on “Bad governance! PAC hits at Mutharika over Malawi Savings Bank sale”

  1. Majaivane says:

    It’s a cover up so that those that took loans are shielded from being known. Investigative journalists do your work. Dig this one

  2. Game over says:

    I can fore see another terrible DEMO looming before 6months it will start from Mzuz and Lilongwe but Blantyre will not participate because they are the ones who elected these arrogant leaders this time arround the target will be all MBL properties because this the root of 92Billion cashgate and the sale of the MSB and the police should take extra care because people will bring with them some pistons ready for any attack

  3. Koma Thom wa mwayi ,you have managed to shallow MSB all assets those fixed assets plus liquidity ,koma ngati ali madalitso akwa Mulungu ndiye wakukonderani ,God bless our land of Malawi ,

  4. Zimvere says:

    Why selling a bank, and nkumati mukufuna kuyambisa bank ina, pali chanzelu apa? Kumbukirani momwe amagulitsa Shire Bus Lines amati ayambitsa company ina koma mapeto ake anayambitsa company yawo ya mlakho. Will this bank be free from politicians?

  5. Trevor Manyi says:

    577 BILLION woyeeee

  6. Justin Madziakapita says:

    There many thoughts on MSB but what are the basic principles that those responsible would have followed so that the sale is acceptable. Then what was the main problem that brought these. What will happen with the loans that were given to the said people. While Legally the sale is acceptable so they say what about the issues that have not been sorted out. Who is running away with the truth. There are five principles of management which are among others ,Honest, Truthful can these be seen with our Leaders. A tree is identified by its fruit and let our Leaders remember there is nothing being done in secret that will not be exposed. It would be good to remember that one day you may leave your children, tribe etc in big mess because you messed up with the publicity office.

  7. paulharstings says:

    Mukamva fodya ndiye ameneyo kuba kopanda nako manyazi mungoganiza za ana anu okha basi simuganiza za anthu osauka ayi think twise before talk boss l think u will change your mind

  8. APM has may b done legally supported action. However, one wonders why dd he suspend the process in the name of consultation and debate?

    Parliament recommended that the whole process should b halted altogether.

    Mukubisala cashgate! but mind u God is not youd cousin.

  9. Zachisoni Phiri says:

    Thus good move by Government, what has MSB contributed to Malawi since its inception. Nothing to me. Why a big blame to government now where were you whille the Ndege was being sold, poor Malawians. Chikumphwerani. Abusa ndiye sadzauona mpandowu pokha pokha muchite convince Southern Region. Otherwise with your bwenu bwenu team zero pa zero

  10. mwanamulanje says:

    that the wholly-owned government financial institution “is not there anymore, that is what it is.”

  11. teketeke just stop reading nyasatimes basi

  12. The whole world loughed on you Malawian. why are you crying today this is what you wanted

  13. KJ says:

    No level of defence can reverse the damage on Mutharika’s leadership. The MSB sale is not a legal debate, its about Breach of public trust.

  14. mtichimwitsa says:

    Kupumutsa Mulli brothers. Kuba katundu WA mphawi. PAC ikayamba kudula mtengo umagwa basi.

  15. Bob says:

    This govt is near its end sooner than you expect. kkkkkkkk

  16. zakubwererani says:

    Mzaziona

  17. MSANA WA PETURO says:

    Ugly Kasaila. Who in their normal senses can listen to your stupid and stinking vomit?

  18. Xander Jimmy says:

    Bwana Joseph Banda……..I feel content of your comment is total misrepresentation of Business world…….Directors decisions can be challenged by shareholders…….additionally relating to disposal of shares cannot be made by directors alone without consent from their principal who in this case Malawians! Who justifiably represented by MP…….hence president amayenera kumva!…………literary I feel this concept about selling government investments, saying that efficiency will be attained need to be researched interms of its relevancy to poor countries like Malawi, without more stable industrial base……of which govt will be assured of adequate tax revenue in order to carry out its social obligations……..some of the benefits of government holding investments are provide alternative source of income which is there to supplement Tax revenue…….so if govt resolt to sell all its investments and be solely relying on tax revenue, I find sick move as govt source of income becomes mmore fluid n uncertain……what if MRA fails to correct enough due to aggressive tax planning techniques employed by tax payers? Or companies or businesses declare losses hence no or less less profits?…….THAT MIGHT LEAD TO TOTAL GOVERNMENT FAILURE TO HONOUR IITS OBLIGATIONS…..that’s includes operational expenditures……..failure to generate adequate revenue will definitely lead to vulnerable govt…..

  19. Che Wanimiliyoni says:

    The legislature always blame the executive of bad governance and arrogance when it is outwitted on a point of law but the legislature doesnt go back to tighten the law so that it shud never happen again. If am not wrong a few years back parliament rejected a certain person to become our diplomate in South Africa but the executive never relented. And there are so many laws the executive has used to the amazement of parliament but the MPs are just sitting phwii without changing them. For instance a certain president decided to use the two-thirds parliamentary majority to open up presidential terms but the law is still as it was that time. Another president decided to ditch his political party which sponsored them into office but we’v done nothing. Another president decided to come back after a five year break had brocken the two consecutive term limit but we havnt tighten that law. Another president brought a political party which never participated in elections to become a ruling party but we’v done nothing.

  20. thumbwe man says:

    People people lest we forget. Bingu adayamba ugonthi like what his brother is doing now. Fisi ndi fisi. Both are Mutharikas, agonthi and nkhutukumve. Just wait and see whats going to happen soon. Bolanso Bingu finished his 1st term and demised wth ……….. PAC pressure, remember. When PAC start talking like this pabvuta basi, another sudden ……..in the offing.

  21. Jamax says:

    Umbuli wachuluka pa Malawi therefore only a few will understand why APM has done this…Ambuye adalitse Malawi. Most of these ppl. who are commenting nonsense don’t know w what’s happening. When they see others crying they cry and when they see others laughing they laugh too. kkkkkkk shame.!!!

  22. dambudzo mwasanya says:

    Koma Saulosi Kolozi Chilima anatibweretsera mavuto ndi samvankhuku chakechi chaku Ndata.Paja Pac ikayankhula timadziwa kuti wina watsala pang’ono kugwa ndi cardiac arrest.Malawians cannot lose their bank because of loans incurred by the corrupt Mullis and his other Lomwe cronies.This man needs to resign immediately and be taken to task.

  23. Kwangwagwa says:

    Mwachedwa abus kunenapo nkhaniyi.

  24. CHOKO says:

    Mtharika was number 3 during elections. First was Lazarous Chakwera seconded by a mayi. Mbava zinaba chisankho thus why amaotcha ballot papers ku warehouse. God protects Malawi on one way or another. Majority Malawians will not cry for long, God will do wonders in this our mother country

  25. Ndathera Pano says:

    Kuba sikuposa apa. Mwabumba poyera amambala a DPP. Inu amend mukumati MCP siizalamuliranso Malawi, kuzinamiza. Mukuganiza muzaba Mpaka kale kale mavoti momwe Mwakhala mukuchitira. Mukudziwa Nokha amambala inu Kuti MCP inawina. Munachita kubera. Mukuthera pamenepa basi. Mudzaona momwe mutazaluzile zisankho zikubwera.

  26. Joseph Banda says:

    THIS IS VERY INTERESTING ABUSA ATHU. It appears you have just done the same way you are accusing the government to have done. PAC asked Malawians on this issue and we gave our responses. For me I advised you on the way professionally govt has handled the sale. Legally the govt was right to do so, if the Directors in the commercial environment decide to take a commercial decision, would any share holder (even the 100%) manage to intervene? This can only be argued in courts of law. The reason is the law looks at other stake holders who can be manipulated and cheated by the strong share holders. As much as Malawians were share holder probably with share capital of say Mk500,000 (???), the creditors and depositors who have supported the bank could be in millions. The law protects these people.

    BUT OUR GOOD REVERENDS IGNORED THIS AND JOINED THE BANDWAGON to consider this as bad governance. Sure? I doubt it very much!!!!

  27. visit says:

    PAC, organisz another conference so that we can give Mutharika 60 days to resign or else we will impeach him unless he reverses the MSB sale.

  28. welensker says:

    Let us think b4 we do any action

  29. Teketeke says:

    The question is: Was MSB created by parliament? Did the president not use his contitutional powers to sell government shares? What was MSB doing financially to the nation? And what about you the reader and me, what did we benefit from the bank that we should think is now gone after the sale? Nyasatimes, don’t just write stories thinking you’re informing or educating me! You waste my time!

  30. Chosamva says:

    Advice to APM to respect other opinions started soon after he was announced as the winner of the general elections. I recall a tearful Maxon Mbendera telling APM “not to misinterpret the mandate that he had been given to be rigid and unyielding”. But alas, like his brother before him he thinks being president gives him unlimited powers to do with Malawi as he pleases. And just like his brother, this unbridled power will lead to his destruction; not necessarily through another cardiac arrest…riding roughshod over people comes with a lot of unnecessary stress.

  31. fight says:

    When shall we Malawians stand as REAL men?What we do is just TALK TALK and TALK no action.AMASOWA NDI WOYAMBITSA.

  32. uncle Zee says:

    I will close my account soon

  33. Mhesha says:

    Malawians continually being misled by the politicised snd biased PAC. PAC is fully aware of the losses in money being incurred if government keeps holding MSB.This recommendation to sale the bank was done by economic experts and the previous regime of PP endorsed this. PAC chose to keep quiet because they were intoxicated by JB’s Cashgate money. Now that the hangover is over they would like to bark at DPP government for implementing the experts recommendation regardless of the laws clearly saying that the task is the responsibility of the executive arm of government.
    Why can’t you just go to Court if indeed you feel APM went wrong instead of the fruitless barking?!

  34. Maximum Prison says:

    How many people benefited from the MSB during its existence? Isn’t good riddance to sell of the out tray which was used to siphon money from government coffers? I for one applaud the sale because it has now leveled the playing ground as far as borrowing of money is concerned! How can only a handful be benefitting from the MSB? To me I say well done by selling it off!

  35. Chikopa says:

    Achimidzimidzi you are talking. Who the hell is Chingota? What does he know in economics? Stick to your verses you idiots. PAC cannot have any say on MSB nor Chisoni another fool of CCJP. You do not know the connotations of letting MSB go. You are just siding with tribalists who think the Lomwes do not deserve anything in Malawi. Wake up Malawi! Why not talk of Indebank?

  36. CHOKO says:

    Anthu inapha DPP pa 11 July si a Malawi. Kumalankhula bwino mukamadzamangidwa nmusadzati ndi woyipa pamene ndalama za banki mwaba and oyipa inu. Don’t compare MCP with DPP. Pali chanzeru chanji DPP ya chita mungoti musiyeni peter alamulire. Kuba basi munamva kuti Malawi president wake ndi Edgar Lungu sikutha nzeru kumeneko. 2019 Chakwera woyeeeeeeeeeeeeeeee.

  37. Mthawanji says:

    That’s Malawi.

  38. Dr Mrs Ben Phiri Mutharika says:

    This little boy kasaila is SHIT. SIMUMALAPA BWANJI

  39. chatonda says:

    PAC should organise another meeting at the Limbe Cathedral as you did in 2012 with deadlines for something to happen. It will happen again for sure.

  40. lyie says:

    Osamva za anthu afe ndithu The heavenly father who has though powers take this group of Peter,Goodall,kasaila to their early graves,inu ndi ndimwini zonse anthuwa akukula mtima inunso ambuye mukuziwa,zakuseri zomwe akuchita mukuziziwa achoseni pakati pathu mu mphavu zanu zonse ndipempha

  41. Man says:

    Ambuye, tikapempha mumatimvera, ndinu wa chisoni. Ilinso ndi pemphero lathu “Chonde mutitengerenso a APM mwansanga”,

  42. mulopwana says:

    action basi apa…anthu osamva opanda chisoni awa

  43. Kokholiwa says:

    Thanks PAC for analysing the situation clearly. But still remains to ask them what happens to people who had loans with MSB?

  44. Omex70 says:

    That’s the problem of being ruled by clueless matchona whose heads are no longer working.

  45. freedom says:

    MSB yapita now its better as any will not be able to get favors from this bank.yes no more politics in general loan guarantees.yes sometimes don’t criticize just for fun.please lets see how many people who will get favors from this bank now.

  46. Achimidzimidzi says:

    PAC is another stupid lot in Malawi or members get bribes.

    We are demanding federal government and you are delaying the process. Why do you want us to keeping on complaining about people who cheat on us.

    Even if you say government is wrong,from what Kasila is answering you, what is you next step?

    Be assured that anytime you say something about government, you will be told either one or two of these, but not a direct answer:
    1. Government is run by democratically elected president.
    2. The president has constitutional powers.
    3. You are jealousy
    4. Why today, and not when PP was in government.
    5. MCP will not rule this country becuase it is a party that killed
    people.
    6. APM is professor and committed to develop this country.
    7. JB is talking nosense to the donors.

    PAC rise to the task.

  47. Joseph says:

    Everyone is just crying about it!
    No one is paving the way forward. No one is even telling us if Mulli has paid their loan yet. Just fwi fwi fwi wont take us anywhere!

  48. Chiwaya Jr B says:

    Let Munthalika rule Malawi peacefully asafeso ngati Mphwake Bingu

  49. Yusuf Hofmally says:

    Pano ndayamba kumamva dzina limeneli: Kasaila!!!!!!. Kodi mukuti munthu ameneyu bwanji?
    I 1st noted him mu malankhulidwe ake ku parliament. Mwano ulimo akukuluwa.
    Koma kadauluka kadzatera……………………

  50. Doctor says:

    Less talk more action malawi

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