Bonongwe branded ‘selfish’ for backing Malawi Saving Bank sale

Malawi Savings Bank (MSB) employees have attacked the state-owned bank Chief Executive Officer, Ian Bonongwe as selfish and incompetent for campaigning to sell the institution.

Bonongwe (L)  is supporting the sale of MSB

Bonongwe (L) is supporting the sale of MSB

In an anonymous letter addressed to Bonongwe and copied to members of staff, Reserve Bank of Malawi Governor, Secretary to the Treasury, MSB Board Chair, Chairperson of the Finance and Budget Committee of Parliament and Chairman of PPPC, the employees say they have observed with apprehension that the insistence by Bonongwe to sell the bank is not in the interest of employees.

They argue that the sell is intended to benefit “your insatiable greed Mr. Charles Ian Bonongwe Sir and the rest of your cronies namely Charles Chuka and Thomson Mpinganjira.”

The staff accuses Bonongwe of holding serious meetings with his associates and further say he is personally advancing his interests.

Staff have also complained that ever since Bonongwe took over the CEO seat the Bank has continuously underperformed such that the Bank could no longer declare dividends to the shareholder.

According to the Reserve Bank of Malawi, the MSB is weighed down by bad loans and it requires a $48.3 million (MWK 23.7 billion) in capital and liquidity by June to satisfy Basel II financial and regulatory requirements or risk being struck off by the central bank.

The Public Private Partnerships Commission (PPPC) requested strategic investors to buy a controlling stake in MSB in which the government owns 100 percent of its shares.

But the government’s divestiture agency did not disclose the sizes of the stakes that are up for sale or how much it was selling them for.

Bonongwe supports the sale of the bank, saying it would allow the bank to attract new capital and grow for the benefit of the Malawian economy.

“The growth of MSB has been constrained by the lack of capital which has slowed down our pace of modernizing and automating our systems,” said Bonongwe as quoted in the Daily Times.

According to Bonongwe, MSB’s profitability has proceeded at a slower pace over the years making it unable “to grow in a manner it should”.

Bonongwe stressed “there are more advantages than disadvantages” in selling the MSB.

Lawmakers blocked the sale in parliament recently referred the matter to the Budget and Finance Committee of Parliament for further scrutiny.

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Our Leaders made mistakes in the past to sell most of the Malawi Development Corporation to foreigners. Companies like Chipiku stores, Davidwhitehead and sons etc. Instead of turning those companies to be fully owned by Malawians.Our privatisation did not look at advantages and disadvantages of that programme. There were managers in those companies that tried had to ask government to develop a policy to help malawians own those companies. The result was obvious. Foreignes took the companies some of whom are always caught at airports with dollars which the country yawn for. It is foolish to sell that bank look… Read more »
Nyekhulani Molimbika

its a shame coz most who are commenting are commenting with little inhouse knowledge of MSB. Bonongwe is a failure and he is trying to earn himself a masive retirement package. MSB was been perfoming better under the stewardship of Mwanamvekha and Sadala. please read the staff concerns for your info!

Maggie Lucius

Sad article. You are hating on the wrong man. Bonongwe is top class economist not you idiots who authored the letter



Arthur G.M. Mtambo



Banking is most profitable bussiness in Mw why is MSB failing, bad debts, by who? Politicians and their cronies , free the bank from political bondage it will tick no doubt


Ikanakhala kuti ngongoleyo anatenga ndi a MCP bwenzi mutachita kutulutsa press release. Koma poti ndi inu nomwe mwangoganiza zochigulitsa chinthuchi.


alomwe! alomwe! nophwisa! zitsiru za wanthu ndiye ndi alomwe, kuba number one, uhule number one, ufiti number one. am sorry that even a person despite being mlomwe Mpinganjira has joined the band wagon. ayi a kwao ndi mizu ya kachere imakumana pansi


Msb ndi ya a Malawi, musayigulise. Tell Muli ndi ena abweze ngongole.


Why are people blaming Bonongwe as if he is the sole proprietor of MSB? Why are most Malawians idiots?

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