FDH offers K4.6bn for Malawi Savings Bank 79% shares

Minister of Finance Economic Planning and Development, Goodall Gondwe, has said the state-owned Malawi Savings Bank (MSB) is not being sold at at K8000 million , saying government is requesting strategic investors to buy a controlling stake in the bank in which the government owns 100 percent of its shares.

Gondwe; MSB not for dsale, we seeking strategic partner

Gondwe; MSB not for dsale, we seeking strategic partner

Malawi Savings Bank

Malawi Savings Bank

Gondwe disclosed to reporters in the capital Lilongwe on Thurday that First Discount House (FDH) had offered K4.9 billion for 79 percent of the bank’s shares.

FDH bank, founded in 2008, is a 100% subsidiary of FDH Financial Holdings Limited (FDHFHL).

The Finance Minister said government had decided to withdraw from being dominant shareholder of the bank to improve the operations of the financial institution.

“The interest is to run the bank in a more efficient way,” said Gondwe. “All the countries out there did the same with their postal savings banks and they are doing fine.”

According to Gondwe, the discussions and proceedings regarding the partnership of the bank is supposed to be through by March 31st, 2015.

“The Registrar has given us up to 31st of this month (March) or else we risk the closure of the bank,” he said.

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 sale of the bank has met resistance from lawmakers who successfully pushed a motion in Parliament last month halting the sale to pave the way for investigations on its viability.

The MPs argue that MSB is the only bank that has wide coverage in the country, especially in rural areas where their constituents are located.

Follow and Subscribe Nyasa TV :

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

More From Nyasatimes

More From the World

36 thoughts on “FDH offers K4.6bn for Malawi Savings Bank 79% shares”

  1. ineyoooo says:

    Iwe chinthu cha 48 billion asset value chika gulidwe pa mthengo wa ka 4 billion. Za chamba eti. Ngati ili 4 billion osagosungunula ma pension ama staff ukuti igulidwe ndio mwanji pa kuipitisa pa stock exchange kapena pa hidden agenda round 2 ya cashgate mu malawi. Anafe tikudikila ma big man nu muyiyambi cashgate round 2 nafe tidyenawo. I can smell round coming malawi. We shud become instant millionaires plus billi onaires. Mind you akuluakulunu this time ikazango phulika we will expose you big time, sitizakubisaniso we ve learned our lesson from round one. We watching capital hill we ve started smelling the smoke from up there .

  2. pina says:

    Nchifukwa chiyani anthu nonse ogwila ntchito mu boma muli ndi dzimimba ngati azimayi oyembekezela pakati?

  3. Hamu says:

    Pali kanthu apa chenjerani a malawi.

  4. Balamanthu says:

    You dont sell company shares on the stock exchange that is in form and shape of MSB.It would not even meet requirements for listing whichever method you use.Recapitalization would be the most stupid thing because the same shareholder would be in control and be part of the dirty politics being undertaken in MSB.Selling a controlling share so that it is in private hands is the way to go.The new buyer will pursue the Mullis to pay back what they owe like hell probably with compounded interest.

  5. Cadaver says:

    WHY ARE THE LOANS OWED BY BIG SHARKS NOT BEING RECOVERED? COME ON MSB, MW!

  6. zandile says:

    John Makhawa you are just showing your ignorance and foolishness. What issues are there not to understand? You do not even know that Gondwe himself is a culprit in running down the bank. U don’t vern know that the IMF is pressuring govt to sell the bank bcoz of abuse by politicians. It has nothing to do with economics. Umbuli basi.

  7. zandile says:

    Do you remember the sale of MTL? Chikaonda paid less than its worth.

  8. real says:

    Why not list on MSE so that Malawians are given a chance rather than a family that will be more beneficial registrar is your employee or guarantee them to foreign banks and make politicians be away to run professionally.The problem in Malawi is interference in everything ,with Air Malawi was the same government was owing it alot of money ,then later on they started saying that it was not making profits poor Malawi,next is ESCOM,THE WATERBOARDS,COUNCILS,MINISTRIES THEN ZERO.

  9. zandile says:

    Recover the money from defaulters including Muli

  10. Prof1 says:

    Malawians, please understand things first before rushing to critisize. As a professional accountant and from a professional’s point of view i think the RECAPITALISATION of the bank through sale of a controlling stake is a good move. If you carefully look at the bank’s bad debts or defalted loans mostly by high ranked government officials, MP’s and so on, its an indication that politically influencial people are taking advantage of the bank being state owned to defaults their liabilties with the bank as they please. Anthuwa makamaka ma MP amangotenga ngongole osabweza ndiye akuopa kuti ikakhala ya private zizivuta.

  11. kadokera says:

    Mulli owns MSB about K3 billion and you want to sell it at K4.6 billion. Things are not adding up here.

  12. Citizen X says:

    BULLSHIT

  13. Victim Chamkhuni says:

    Mulli, Mulli! Mulli! Evertwhere. They own this country!! They buy cheaply and destroy ownership of public entities,, get loans cheaply and never pay back for survival of banks, get contracts easily and never fulfil the work, get involved in national resources and destroy them without replacements, eg deforested Chikangawa Forests, etc etc. Completely destroying the nation. Malawi is worse off now with Mulli’s selfishness as a result of political and tribal affiliation to the ruling party. God help this nation.

  14. BENSON MTEMBO says:

    FDH NDIYA SEVENTHDAY NDIYE NGATI ULI WA MBONI ZAKO IZO USOLVA…….

  15. bonya says:

    The tendency of the DPP govt is that they run down a public enterprise so that it can be sold cheaply to their friends. They did this to Shire Bus Lines. This company was starved so that it could not survive and they sold it to Mulli. This is a viable busness only that Mulli is also siphoning money from it to other companies.

    They did the same to Air Malawi when it only needed MK2Bn to turn around. But the deal was stopped by Parliament. At that time, it was Mia and al who wanted to buy Air Malawi. But the delay by Parliament soured the deal and it had to go to public tender during the time of JB.

    AMalawi tisagone. Parliament has the right to stop this deal as it has an oversight role on the Executive, apart from making laws. DI not listen to these corrupt lawyers that have been paid to say that the Parliament is wrong in getting involved. An owner of a business can give instructions to the directors/management on what to do. If the directors are unhappy, they resign.

  16. gabbage says:

    can someone give us net assets for this bank pleaseeeeeee?

  17. Palikanthu says:

    In the name of Jesus Christ let this daytime robbery not come to pass, but your will Oh Lord.
    How can politicians and crafty businessmen rip off our country one more time even as we are bleeding to death DUE TO EXORBITANT PAYE!

    We have not recovered from cashgate drainage and then this; giving away MSB to cover up the crimes of the mighty elite and their cohorts in the ruling power!!
    I take authority in Jesus Christ to command out every such dubious sale that rips of innocent Malawians in the matchless name of Jesus Christ

  18. bwanji kodi says:

    ngati mukugulitsa msb mosafuna kumvera maganizo a anthu ndiye nafenso a phunzitsi tigulitsa magovernment schools amene tikuphunzitsapo ndi cholinga choti nafenso tipeze kangachepe chifukwa boma ili lakanika kuthandiza aphunzitsi zoona tizikhalira ngongole ku mabungwe?

  19. Patriot says:

    Who are the owners of FDH?
    Why hiding their names?
    When did FDH started?
    NO, THE VALUE OR MSB IS NOT 4.9 billion kwacha but 40 billion kwacha.
    If you go ahead to sell this bank, we will also push for the selling of the HOTEL CHINA BELT in Lilongwe.
    GOUVERNMENT MUST NOT RUN BUSINESSES AS YOU PUT IT WITH MSB.
    SELL BINGU INTERNATIONAL CONFERENCE CENTRE, BINGU HOTEL, MALAWIAN AIRLINES and all other gouvernment businesses.

  20. OGO!! says:

    I think Malawians should not be taken for fools..don’t allow this nonsense to happen.

    It is of the best interest of all to reject this move…STAND UP AGAINST IT!

    Was FDH licence not revoked for dubious dealing under DPP by PP Govt? Why it it then Gondwe rushed to reinstate its licence without proper consultation and all of a sudden the same bank is being touted as the favourite to buy the state owned bank? Something is certainly not right.

  21. akulu says:

    Its Peter who is buying it. FDH if u buy this bank we will campaign for everyone to close accounts in ur bank

  22. John Suzi Makhawa says:

    Most of you barking here cannot understand these issues, your education level is low. Leave these things for accountants, economists and lawyers. Everybody who did night school or arts lessons should not dare comment.

    1. Jelbin mk says:

      U are talking like a foolish man how can aK46 billion asset be sold at K4 billion????????? Which school did you go to yourself? Were you selected with the advantages of quota system? You are the most foolish human beings who has ever lived. It doesn’t need a lawyer or an economist to point out discrepancies in this deal unless that person is as daft, idiotic,myopic,dunderheadrous, dull,sleepy,illiterate and stupid as you Mr Makhwawa

  23. Jabu says:

    Pse Goodall Gondwe don’t fool us MSB is not a postal bank. It was a postal bank before it became MSB. Surely 4.6 billion is not realistic. Yes sell the bank but at least at a reasonable price. Could you also come out in the open on how Mulli and others will pay back what they owe MSB. Chonde my countrymen we need a purple revolution in Malawi otherwise……

  24. Kenkkk says:

    It I will be very stupid and pure negligence of duty or blatant corruption if the new bank or management doesn’t pursue previous debtors of msb. Just like savers of msb will still have their savings unchanged in the new bank unless they decide to leave the new bank or management.

    Some of us take the view that Mulli will not have their debt written off just because a new bank or management has taken over msb even if fdh is related to Mulli through politics or other forms of dubious relationship.
    The sale of the msb includes toxic debts as well, so mulli will not escape strictly speaking as the new management will also be inheriting these debts which they have to recover from debtors.

    That is why it important for the govt to tell us very clearly what are they actually selling from msb?

    As it stands at the moment, the govt or we tax payers own100% of msb. Mulli and others have loans from msb, mulli alone about 3bn or more, that means Mulli owes the govt or us tax payers that amount of money which need to be paid back. If the govt sells msb, how is it going to recover tax payers money from mulli? Is there any arrangement from the govt in place as to how it will recover tax payers money from debtors such as mulli once msb is sold? This DPP govt will be accused of corruption and incompetence if it doesn’t recover tax payers money from msb debtors but tushes to sell the bank.

    it seems DPP is trying to save mulli at the expense of tax payers, is this the good governance you promised us? The people of Malawi will demand their money back. DPP, reserve bank and finance ministry are all colluding to sabotage msb at the expense of tax payers, what a shame!!!

  25. sikusinja says:

    FDH doesn’t open banks on Saturdays…is that in the best interest of all the customers…

  26. This is daylight theft , what are they going to do with the money realized from this sale? Another cashgate? Bullshit! This government has seen that there no money coming from the donors so the only way enrich themselves is by selling government assets so they can divert the money into their pockets. Malawians wake up! One day these matherfuckers will put the whole country on auction. We are being sold as slaves.

  27. Carolyne says:

    79% to be bought by FDH? What no sense. the government might as well sell the whole bank. what are they going to do with 21%? they will totally lose control of the bank

  28. Mr Kabaza says:

    Is this man really an economist or since he is a northerner he cheated on his exams or his teachers up marked his grades, don’t they always do that these northeners? You can raise the 4.6 billion just by selling furniture and a few cars from msb branches you buffoon! Is Peter Bwampini Mathanyula Muthalika and his lomwe dogs that bad! Muli brothers and all the politicians who own the msb money should pay back, otherwise every civil servant should start stealing what ever they lay their hands on. This shit of a country ruled by monkeys is gone!

    1. Baba wa Boyi says:

      The value of a company is its net assets, not just its assets.

      And this buffoon you are talking about, was voted best Finance Minister in Africa, not but Malawians but Africa.

      And by the way he is also a Fellow of the Institute of Bankers.

    2. JJB says:

      Mwanama a Kabaza.

      Gondwe has a very impresive history.
      1. First Malawian General Manager of Reserve Bank. If he was not from the North, he would have been First Malawian Governor of Reserve bank
      2. First Malawian Secretary to the treasury -Dr Banda was Minister of Finance
      3. He was educated at Makerere, I don’t think they favour Northerners there, and he went to LSE, not favouring Northeners there.
      3. President ADB – no mbili ya kuba.
      4.Director for Africa -IMF – when he retired the majority of countries in Africa anadandaula because he was good at his job- you can read this on line.

      If there is a minister in Malawi that knows what he id doing it is GONDWE.

      The problem with Malawians is the “wakumpoto syndrom”

    3. M23 says:

      Leave Northerners out of this. If you cheated in your exams it doesn’t mean others cheated. If most of your kind are not educated, find out why. You may find out that it is a mentality like yours that is holding you to progress. If people you dislike are doing fine, the solution to progress yourself is in emulating what they do and probably do better and not hating them for no apparent reason. The problem is that we don’t want to emulate what people we hate are doing successfully. If John is a good soccer player, find out why he is a good player. If he is good in Maths find out why. The answers to these question will help you improve. Hating John will take you nowhere while he progresses. You may realise too late that you have wasted all these years hating John and that hasn’t taken you anywhere.

  29. msb customer # 1 says:

    Z 4.9 equivalent t 23.7 billion ths z day light robelly by dpp gurus

  30. Cocoon says:

    So what you are going to do with the people who own Billions of Kwachas to MSB? Are you going to write them off? Is this a gift to DPP gurus? Please let everyone pay back the loans then sale the Bank, then sale the country next and share the money too, pat yourselves on the back coz you have done a good job just the same as a treason case. One wonders what planet you all come from? then you wonder why the westerners are not supporting you in this crisis, have you ever heard about accountability? NO, It does not happen in Malawi.

  31. mona says:

    Why can’t the government be open enough by publishing the accounts of the bank for the last two years, so that we may all know how much net assets the bank has, fellow malawians you might be suprised to see net assets of msb being valued at more than 30 billion yet some fools want to sell the bank@ less than 5 billion hehe hehe dpp is full of devil worshippers

  32. mona says:

    4.6 billion offered by fdh is too little it cannot even buy the msb head office building in blantyre, don’t sell the bank it is ours, Goodall you are a fool

Comments are closed.