Collect outstanding debts from Mulli and others owing Malawi Savings Bank – Parliament

The Budget and Finance Committee of Parliament wants Capital Hill to ensure that non-performing loans are collected first before authorities sell 49 percent, not 75 percent, of the State-owned Malawi Savings Bank (MSB).

Chiphiko: Government should hold 51 percent

Chiphiko: Government should hold 51 percent

Lipunga opening bids documents for MSB sale : PPP deemed to have  bad reputation

Lipunga opening bids documents for MSB sale : PPP deemed to have bad reputation

In an eight-page report dated March 23 2015  the parliamentary committee chaired by Ron Chiphiko wants government to help MSB board and management to ensure that Mulli Brothers Limited (MBL) pays back its long outstanding debt to the bank estimated at K4.6 billion which, however, is being contested in court.

“If there are outstanding payments to MBL, government should implement its undertaking to pay Mulli Brothers through MSB as enshrined in the ‘Assignment of Proceeds’ arrangement between MBL Holdings and MSB,” it says.

The report noted that MSB management and Mulli Brothers signed an assignment of proceeds whereby all money owned by government to Mulli Brothers was supposed to be channelled through MSB and government issued a Letter of Undertaking to this effect.

“ Contrary to this arrangement, government continued to bypass MSB and paid Mulli Brothers directly.”

The committee also called upon government to pay MSB all outstanding debts by some public institutions, including Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM), Agricultural Development and Marketing Corporation (Admarc), Malawi Defence Force (MDF), Malawi Rural Finance Company, Public Universities Student Scheme, Malawi Rural Development Fund (Mardef) and Farm Input Loan Programme (Filp).

The committee also proposes that government should only shed 49 percent of the shares and not 75 percent as proposed, adding wants an independent body to be appointed to evaluate the bank.

Parliament notes that PPP Commission has “a bad reputation” when it comes to selling of government assets.

“Stemming from the then Privatisation Commission, the entity has not made sure that public assets fall in the right hands. Most of the privatised entities have shed jobs, made no tangible investments and have not operated in the interest of Malawians,” the report reads.

“It is the wish of the committee to see that the issue of MSB is handled in the best interests of Malawians and not just to serve personal interests of some quarters within our society. The committee trusts that the shareholder [government] will find the concerns and recommendations valuable as the bank remains the asset of Malawians and whatever decision to be made should benefit the public.”

FDH Financial Holdings Limited emerged the sole bidder of MSB and offered K4.5 billion for what Minister of Finance, Economic Planning and Development  Goodall Gondwe said represented 75 percent of the bank’s shares and that government would negotiate a better price.

Nyasa Times reported on Saturday that MSB employees obtained a court order stopping the Public Private Partnership Commission (PPPC), Minister of Finance and other stakeholders from disposing of government shares in MSB.

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Mtupatupa
Guest
MBL is refusing to serve its loans becoz: 1 MBL was just a messanger to Chitsilu cha njanji; MBS was been sent by Bingu to collect the money, since it was Muli who signed the delivery notes, when Bingu died chipako chinamutsalira Muli. 2 In turn Muli is quizzing Peter to abolish the MSB so that he will be free and moreover he can not serve the loan / money whch went to the former fallen Head of State. This is why the loan is said to have been taken through overdraft and it has no coloratal that MSB can… Read more »
MAMINA
Guest

KENAKO TIMVA ZOTI MA STATE HOUSE ONSE AGULITSIDWA

KOMA CHITUKUKO SICHIKUWONEKANSO

Nyau ya kudambwe
Guest

Kodi iwe asset declaration ndiwe mbuli yeniyeni, nyau yotchedwa chewa. Sukudziwa kumene kudachokera MSB. Idachokera mu Post Office ndipo ma post office adayamba ndi atsamunda chewa wonamizira uja(kamuzu) asanabe dzikoli. Press Trust ndi ndalama za makhadi ndi madzira amene timapereka kwa Richard Armstrong (kamuzu).

Asset Declaration
Guest

Iwe ndiwe nyau ya ku dambwedi eti…….mbuli ambuyako!

Kavuluvulu
Guest

Mulli alipire kaye ngongole

ngangula
Guest

Ndizomwe timafuna kusamva ife a Malawi

nana
Guest

In the first place mulli must pay back msb loan

losco
Guest

Long comments are not read in this column.Take heed of it!You only waste your time!!!!!!!!!

Boy
Guest

By selling the Bank, they want to bury all cash looted through Mulli , Admarc and the other statutory institutions. These guys are clever APM and relatives inherited Bingu’s stolen money. Let us not allow this to happen

mashabera
Guest

what a brilliant thinking from the parliament finance committee. I’m a DPP supporter but this i support. How i wish DPP acts like this all the time. Salute the decision

MW
Guest

Musova

wpDiscuz

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