Govt settles Mulli’s K5bn loan, 12 others at Malawi Savings Bank -Report

The cash-strapped Malawi government—which is struggling to even buy the most basic of drugs for its people—has committed K6 billion  taxpayers’ money to repay loans that 13 private sector players took from the now ‘for sale’ Malawi Savings Bank (MSB) and failed to repay, it has been reported.

Msowoya“Government has committed to honouring the repayments

Msowoya“Government has committed to honouring the repayments

 Mulli: Debt settled

Mulli: Debt settled

Of the total giveaway, roughly 83 percent (K4.9 billion) has gone to Mulli Brothers Limited (MBL)—whose managing director, Leston Mulli, is a known supporter of the ruling Democratic Progressive Party (DPP) and a close ally of former president the late Bingu wa Mutharika, the elder brother to the current leader, Peter Mutharika, The Nation reported

The Nyasa Times reported that government’s was planning to write off debts of DPP financiers when Treasury instructed Reserve Bank of Malawi to issue the K6 billion promissory notes to take toxic assets off MSB books

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.

The bank was also failing to collect K83 960 954.29 from Maranatha Institute of Education owned by 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.

Treasury spokesperson Nations Msowoya said government hastaken a decision “to deal with the toxic loans separately.”

But Consumers Association of Malawi (Cama) and governance body Catholic Commission for Justice and Peace (CCJP) have condemned government for forcing taxpayers to pay for the loans.

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God First
Guest

I feel very sory for poor Malawi. Why can’t all collaterals be taken from these borrowers by the bank and sell to recover part of the loans? Are we saying that collaterals have already been sold? Are these borrowers walking on foot, putting on sleepers now because they have proved to be very poor? Are we saying they have nothing now? Why taking the taxes of poor Malawians instead of buying enough drugs in the hospitals? May God help our mother land, Malawi.

This Is Malawi.
Guest

Womwa tea adzamwaso.

Mapyiya
Guest

Apa anyamata akwa katundu mukuonjeza,ngati zatikanika osangosiya eeeee,tikuchita manyazi ndi zomwe mukupanga

Kanyimbi
Guest

But poor farmers are being pressurized to repay the MADEF fertiliser loans. Very sad indeed.

Chimani. Game
Guest

I hate this idiot ruling Malawi,joke of a president

MBACHI
Guest

IF THE GOVT IS GOING TO PAY FOR THOSE OWING MSB, WE WILL GO TO THE STREETS AND ASK PETER TO RESIGN IF NOT THE ARMY SHOULD TAKEOVER THE GOVT.

Chidongo
Guest

We have no president in Malawi. We should call for fresh elections. Before that let’s unite and save our money. Know that condemnations are not enough to make the arrogant government move. Demonstrate to the state house, our house.

Chalo ichi ?
Guest

There is no need for Mwans to complain

Chalo ichi ?
Guest

Viri makola vose ivo. Even ikadakhala trillion thats a smale issue

Phillip mponela
Guest

I can call this a failled gvt.considering the salaries that we get, we’re paying huge sums of cash and someone is taking the same money to repay the loans of individuls,this is ridiculous!!

wpDiscuz

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