CSOs to hold protests against Malawi Savings Bank sale

Come Friday next week, the rights campaigners and concerned citizens would hit the streets to hold protests against the controversial recapitalisation of state-owned Malawi Savings Bank (MSB).

Mayaya: We will hold protests

Mayaya: We will hold protests

The activist will also present a petition to Speaker of Parliament Richard Msowoya so that lawmakers should be pressurising government to make sure loan defaulters pay up their dues and not tax payers bail them out.

One of the organisers, Billy Mayaya, said they have informed police about the peaceful demonstrations.

“We are aware that politicians and businessmen have been using the bank to siphon billions of kwacha. We will not allow hard earned taxpayers money to be used to write off toxic assets,” Mayaya told Nyasa Times on Friday in an interview.

Government has come under intense criticism for injecting K6 billion into MSB to clear off toxic assets instead of simply asking those that owe the bank to repay their loans.

“We demand that these defaulters’ properties and assets be seized,” Mayaya said.

“Ordinary people who default on loans are punished severely so why crooks with political connections should be allowed to go scot free? It will not happen on our watch,” said the rights campaigner.

He continued: “We demand transparency and accountability at all costs. This is just a new chapter in the cashgate saga. Malawians are tired of this empty rhetoric about austerity and zero tolerance about corruption. We demand action and we demand it now.”

One of the social commentators and writer Stanley Onjezani Kenani also took to Facebook to back the protests.

“What the Mutharika government has done — settling Mulli’s loans of K5 billion — is criminal. Mutharika must step down. I am happy to hear there will be demonstrations,” he wrote.

Consumers Association of Malawi (Cama) have also hit at Capital Hill for apparently absorbing the bank’s loans obtained by companies which are still in business and have not been declared bankrupt.

Major on the list of the toxic loans, which government has taken over, is the Mulli Brothers Limited (MBL) loan, which stands at K4 969 043 316.93.

A report issued by the Budget and Finance Committee of Parliament on MSB’s recapitalisation largely blamed government for failing to support the bank’s initiatives to collect the money from Mulli.

Other defaulters included Varibo Spirits—owned by Duncan Kaonga—at K397 763 522.07, KJ Transways owned by a Mr Mkumba has a K172 536 106.23 loan that has not been serviced, Ganizani Transport owned by Charles Fungula owes the bank K97 908 785.35.

MSB is owed K83 960 954.29 by Maranatha Institute of Education of Ernest Kaonga, K71 220 602.47 from Consolidated Building Contractors owned by Peter Mhone, K69 776 370.81 from CK Construction of Chester Makuwira.

The bank is also failing to collect K68 034 537.28 from Fincoop, K65 910 536.30 from K’s Investments owned by Bintony Kutsaira, K30 717 180.76 from MGI Trading of Macpharen Mpeta Phiri, K27 179 448.51 of Injena Petroleum Limited, K20 722 510.70 of Angel Wings owned by Angel Chaponda Nazombe and K12 782 074.13 of Eranive Trading for Fanny Joshua.

Government has sai it will set up a debt collection entity that will recover the loans.

 

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
Kadziotche
Guest
Sale of parastatals is a prerogative of the PPP (Privatisation Commission).Government has sold other companies before e.g Air Malawi,Malawi Railways etc.There is always ‘facelifting’ of the company that is on sale in order to attract buyers.Loans are bought out,assets increased sometimes shares are sold.At MSB what has happened is not corruption or political.Government has paid up the ‘toxic loans’ but that does not mean the defaulters are forgiven of their debts,NO.The PPP knows how they will recover the loans back.Those owing the defunct Malawi Railways,Air Malawi and others are still paying back their debts.Why this noise about MSB? Media houses… Read more »
Jihadi John
Guest

Mr Peter Mutharikha don’t mess up with Malawians. If you tread on the same path of taking Malawians for a ride that brought your late brother, am afraid you are nearing to a more dramatic end. You got to stop this nonsense now or never!!! We can’t take this no more. We are tirelessly working to take this country on the right and we can’t tolerate a stranger like you take us backwards!! We will see!!

Mbizo Nakulungwa
Guest

I am sure that Mulli is not in the wrong here. Some greedy people took loans in his name and he was left with nothing but a token of thanks. That is why those who used Mulli are trying their best to settle the bill on his behalf

Sapitwa
Guest

Specialists in Demos and nothing more.
The matter is already receiving more attention in Parliament and there is also a standing court injunction. This Demo has no substance and is coming from opportunists who justify collecting donor money from their funders through causing havoc than using brains.

Sunrise
Guest

I am surprised that the ever alert Government propaganda machinery has gone to sleep over this matter ndiye kuti kalpo kalipo.

ngulenje
Guest

Sizodana ndi atumbuka apa Ernest ngwakuti navo visilu vakuba va DPP ivi vayambapo

ngoni wachi tonga
Guest

WE NEED ANOTHER OPERATION BWEZANI!!!!

Zidura Ntengo Undigwere
Guest
Zidura Ntengo Undigwere

Most CSOs in Malawi are specialists in demonstrations; they are excellent at that and nothing else. There overseas funders demand this kind of political action, and rigorous analyses of issues too. But most of the CSO have no capacity for the latter; hence always calling for demos.
Perhaps the only exception is CAMA and Kapito. That is one reason they enjoy the most widespread support. This demo will be a failure in terms of turnout; you’ll see the usual faces – Kabwila-Kapasula, Chakwera, Mussa and all PP MPs.
I, nevertheless, support the recouping of the money. I really am.

YOHANE MBATIZI
Guest

Msonkho wanga ukundipweteka heavy ! Munakakhala mumandipatsa bwezi pano ndili ndi nyumba ku nyambadwe !Haaaah !Kalanga ine ,Chauta onani Malawi>Those who stop doing evil become a prey in the day light !
Malawi has the highest tax rate in this African region .And those bearing that HEAVY CROSS are the rural poor popularly known for living under ONE DOLLAR WAGE PER DAY according to IMF standards.Ambuye akuona inu !Samalani , pakuti amene analenga maso ,angalephere kuona zedi ?Aaaah!

Pelani
Guest

transparency is needed

wpDiscuz

More From Nyasatimes