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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16 thoughts on “CSOs calls for total cancellation of Malawi Savings Bank sale”

  1. Antigo Combatente says:

    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.

  2. Denguzman. says:

    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.

  3. Christian life says:

    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?

  4. BigMan says:

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

  5. Walter says:

    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 meet and form an advisory board that will evaluate and reform the banks organisational structure, operations and systems and hire a management team. The bank should retain its rural settings and add value with mobile banking.

  6. muthu muonege says:

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

  7. Reserve Bank of Malawi Official says:

    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

  8. ba fipuli says:

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

  9. Aurther PM says:

    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.

  10. CHEWA FEDERAL FRONT says:

    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: BE YOUR OWN MAN.
    APM is gotta be his own man, otherwise uncultured semi-literates like Mulli and Ben Phiri will run the show.
    Abale, mpaka president atchedwe “PUPPET”???
    Mr President, get to work, starting with those petitions on your table.
    But then, I gotta say Billy Mayaya should SLOW DOWN. Just a piece of advice.

  11. Sapitwa says:

    Fair enough Mr Mayaya and your friend your suggestion to stop selling the bank completely.
    However you have no right to suggest that the government should inject capital and resources into this carcas. This is tax payers resources that could be spent wisely in dealing with other problems like diabetes, buying more maize, buying mire drugs in hospitals …..
    No bale out to companies that operated carelessly; let it solve its issues in commercial way. If it fails, it will be declared bankrupt. Thus the way to go.

  12. Wamandasi says:

    i rarely agree with activists and CSO because they critisise and analyse problems but they lack short of providind the solution or the altenative.

    encourage all Malawians including CSO members buy shares, own 90% and run Msb. WE aLWAYS SAY BOMA NDI ANTHU. We cant be looking at government from the distance and exclude ourself when it matters most. Sco encourage, pastors, ex criminals, thieves, drug dealers to buy shares so that they get a chance to run legit business

  13. Pichi says:

    Who will be bankrolling the bank? My taxes kapena money from the NGOs?

  14. Mbanangwa says:

    The community wants Mulli to settle the money he borrowed. After he repays the money, everything will run smooth. Do not close your eyes. The bone of contention is around there. Hy did the government decide to bail out Mulli while the common poor Malawians are suffering.

  15. THAT IS TRUE, THE BANK SHOULD NOT BE SOLD, PERIOD.

  16. Dwambazi says:

    Can any level headed mind let me know why MAthanyula’s lawyer is defending Mulli?

Comments are closed.