CSOs calls for total cancellation of Malawi Savings Bank sale

some sections of the civil society have called for “total cancellation” of the state-owned Malawi Savings Bank (MSB) and that government should inject resources into the financial institution.

Mayaya: Cancel the sale not just suspend it for convinience sake

Mayaya: Cancel the sale not just suspend it for convinience sake

The call was made by human rights activist Billy Mayaya and Forum for National Development (FND) leader Fyson Chodzi when the two addressed reporters in Lilongwe on Saturday.

President Peter Mutharika last week suspended the sale of MSB, pending review in response to numerous calls for a thorough examination of the controversial sale.

But Mayaya, who recently led demonstrations against the sale of the bank, said the President should ensure the sale is cancelled in totality and not just temporary stop just to hoodwink Malawians in a bid to have a smooth budget session of parliament.

“Government should initiate audit of the entire dubious process of the sale through the Initiative a Public Offering and the listing of the Malawi Stock exchange. This should include a probe to the individual and institutions involved, these include a Reserve a Bank and Public Private Partnership Commission,” said Mayaya.

“The President should completely cancel the sale and not suspend,” he added/

The CSOs have demanded transfer of the Bank’s current Chief Executive Officer(CEO) Ian Bonongwe and dissolve the entire board which, according to them, was appointed by the recommendations of the current CEOs based on partisan politics.

Fyson Chodzi, of Forum for National Development said the sale of MSB smacks of “dark corner deals.”

MSB – which currently is in a financial mess – is being sold to only preferred bidder FDH Bank of Thom Mpinganjira.

The deal saw FDH offering K4.9 billion to buy the bank but government authorities argued that it was on the lower side considering that MSB is a big bank with a lot of assets.

Meanwhile, economic experts has argued that Mutharika’s decision to suspend the MSB deal will greatly affect operations of the bank as some serious and big customers will continue to be on a wait and see due to uncertainty surrounding the future of the financial institution.

Economics Professor at Chancellor College Ben Kalua is of the view that suspending the sale of the bank will have adverse economic impact in that already reports indicate that some customers are deserting the bank by closing their accounts in fear of unknown future.

“The bank operates on confidence of customers and once you put customers in suspense without a certain position known about the future then customers are bound to decide to pull out their resources up until the institution comes back to normalcy of operations”, said Kalua.

Mutharika restated that it is imperative for his Government disposes its interest in MSB for the good of the national economy, arguing that the decision on the sale is supported by the Institute of Chartered Accountants in Malawi (ICAM); the private sector; the Regulator of Banks and Financial Services as well as the donor community including the IMF, among others.

MSB chief executive officer, Ian Bonongwe, has since said although the recapitalisation process of the bank could eventually lead to a possible change of the shareholding and ownership structure of the bank, it is not about change of business of the bank.

He, however, pleaded for a quick conclusion to the matter so that the board and management of the bank should strategise on how best to position it depending on how the recapitalisation process is concluded.

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Antigo Combatente
Guest

MSB is the only bank I knew during my youth ages. I do not think that selling would solve any problem. What we should do now is to investigate why the once prosperous financial institution in Malawi should be in a financiial mess.
If there are any culprits behind the whole episode must be taken to book.

Denguzman.
Guest

Mr. President, are u really a true Malawian? U and Goodall, u are playing utchona style of running this govt. Kodi mwamva liti kuti Amalawi sakufuna kuti MSB isagulitsidwe? Kodi mukubisanji ku MSB? Inu mukulimbana ndikuteteza mbava mumalo moteteza udindo wanu coz simukuziwa kuti ng!ona zimene mukuweta mu boma lanu zikumezani b4 2019.

Christian life
Guest

I heard a call for wiser suggestions from State House as to how the bank should proceed and if this is the kind of wisdom Mr Mayaya and the CSO Organization then am afraid you have no direction and probably you don’t deserve to meet the media as yet. Please plan with the society and I don’t think you consulted us the society before you went ahead to media. Did you really talk to the public on the way forward within past 24 hours of presidential declaration or you consulted yourself only?

BigMan
Guest

Poor Malawians, confused, dull, unsophisticated, selfish, and predictable time wasters!

Walter
Guest
The bank should be sold to all Malawians through shares (IPOs) and the price value should include the cost of Basel and the illicit or toxic loans and any other amounts to keep the bank commercially viable . As for the loans, there was collateral, assets pegged to the loans taken. The bank has to recover that money by selling those assets and if the loans exceed the collateral then other assets not hedged against the loans should be evaluated by estate evaluators and the legal authorities so that the said amounts are recovered. After the sale, the shareholders should… Read more »
muthu muonege
Guest

Lets build our country malawi, msb should not be sold.

Reserve Bank of Malawi Official
Guest
Reserve Bank of Malawi Official

THIS IS THE WAY TO GO. very individuals will benefit from the sale including most Lhomwes. Kodi ife a Malawi kugona bwanji?

Why should you trust us to decide on the sale of MSB when Reserve Bank of Malawi was used as a conduit for cashgate?

Koma a Malawife kugona

ba fipuli
Guest

Mayaya yours is a foolish solution the tax payer bailing out the bank my foot!

Aurther PM
Guest

Government should stop the sale completely. Inject capital, change management and board and let be the bank listed on stock of exchange within a specified period say two or three years. Alternatively the bank should be given approval to borrow from outside.

CHEWA FEDERAL FRONT
Guest
There are just TOO many mistakes APM is making. … a flip-flop on salary increment … a flip-flop on assets declaration … a flip-flop on this silly dark-corner-deal MSB sale … and, then, the Lumbadzi painting fiasco … lately, a flip-flop on SMS tax The president is obviously an intelligent man; no doubt about it. Yet, strangely, he comes across as someone who cannot make decisions on important issues. For all we know, he has not responded to several petitions including those of “Mzimba Kingdom” & Federation/Secession Let me reiterate what the departed master, Raphael Tenthani (MHSRIP), said to APM:… Read more »
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