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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89 thoughts on “Govt settles Mulli’s K5bn loan, 12 others at Malawi Savings Bank -Report”

  1. God First says:

    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.

  2. This Is Malawi. says:

    Womwa tea adzamwaso.

  3. Mapyiya says:

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

  4. Kanyimbi says:

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

  5. Chimani. Game says:

    I hate this idiot ruling Malawi,joke of a president

  6. MBACHI says:

    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.

  7. Chidongo says:

    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.

  8. Chalo ichi ? says:

    There is no need for Mwans to complain

  9. Chalo ichi ? says:

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

  10. Phillip mponela says:

    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!!

  11. amnzeru a kummawa says:

    Nonse mwapanga izi,muzafa imfa yowawa. A Varibo hummer ija, matama onse aja, ngongole phwi! Nawenso Nations Msowoya, you are happy saying, “we have repaid” zamkutu!

  12. Vehtekhu says:

    Zitsiru za anthu ndi mabungwe.Kusiya kulimbana ndi mbava za Cashgate koma kulimbana ndi a Malawi anzanu olimbikira osaba..xxxxx…pantumbo agalu inu

  13. zakakaliya mulopwiya says:

    Corruption at its best. Let MSB get back our money from thèse people. Nkhani ili apa ndiyoti akagawane kuseli. Another CASHGATE.

  14. kazinga says:

    Inenso boma indipatse 400,000.00 plus yanga chifukwa Mulli is owing me ndalama yanga yomwe akulephela kupeleka for two years. And for Nation newspaper in your article you said Mulli is the number two best business man in Malawi, are these the calibre of business men you call the best. Shame on you nation newspaper with your corrupt reporters. Not professional kuzolowela kugulidwa

  15. kadamanja says:

    Boma la Dpp lina pa thako chomene.

  16. Omex70 says:

    Stupid economists of Malawi at work.

  17. billy phiri says:

    Where are you? It is on matters like these that you need to stand tall and shout loudest in clarifying, educating, enlightening and in protection of the voiceless masses of the country; where are you: Mr John Kapito and your CAMA? Messrs Trapence and Mtabo? CONGOMA? Malawi Council of Churches? Episcopal Conference of Malawi? Evangelical Ass. of Malawi? Union of Adventits in Malawi? Pentecostal Association in Malawi? Muslim Association of Malawi? The masses need to know the truth, how the govt will recover the billions being committed for the failed loans of MSB? Where are you, they need to hear from yo on this catastrophic financial issue for Malawi?

  18. chisankho cha amalawi opusa, mudandaula chani lero, nthawi yosakha atsogoleri abwino nunalinayo. Lero akanganya akugwirani pamoyo. Munya muona peter achotse chondo amalawi opusao samakudziwa.

  19. Nyampini says:

    Ma cashgate masters kubwela poyera tsopano,by end of this yr our economy will collapse bcoz aini osolola ndiamenewa!

  20. Mr Popes says:

    Thats what wedesrve for voting foolish peole into power

  21. Wakumudzi says:

    So our money are meant to pay for Mulli’s debt?Tisova sitinati.CHIMANGA WOYEEEE!

  22. Max says:

    whats wrong with Peter?Is it goodall gondwe. the economists who seats on the chair simply for retains? Goodall is the same guy who authorised these debts under the older Mutharika. lero, he is accepting to clear them. Where is his wisdom? Until this guy retires permanently, Malawi will not see any positive monetary development. This government is proving to be a replica of the older Mutharika. I see Maalwi as a doomed country. and until we put a real revolution, that will see all recycled politicians off the stage, we are destined to persue the decline path. With all the money pumped over the years by the donors, and our own sweat in agricultural produce and the heavy taxes, all we get is more poverty because of govt coffers stealing. LETS RISE UP PATRIOTIC MALAWINS. here is a real call for protesting

  23. No tribalist lomwe. says:

    Thats what u deseve 4 voting dpp.dont cry, wise men from de east could easly see this msbgate way back b4 2014 elections.2
    019 u will still give then ur vote and they’r so sure about this.cashgate 4ever, dpp will never learn.cry ur lungs out till u bleed, cry 4 ur poor dicition otherwise lets enjoy with mulii as we pay his bills.

  24. Foreigner says:

    Im confused and surprised. Thats all I can say.

  25. tikhala says:

    A Kaonga varibo showbiz yonse ija ngongole? A National Bank naonso akuzifuna zao. Ndamva kuti mwathawira ku Zambia. Akuchiteni declare bankrupt – benz ndi hummer tizigulitsa – paja scandal ya nyumba adakugwirani kale ku lands. Eeeish! mabvuto

  26. Charombanthu says:

    Zusiyana pati ndi Cashgate izi???

  27. Nyirenda says:

    Ambendela ndi MEC yanu mudatilakwila a Malawife tinkakana zimenezi God will avenge for us.

  28. nchimba says:

    Zakunkholo. Alomwe awa andikwana

  29. Point Blank says:

    We may as well call this Loangate!!!!!!!!!! Loangate. There is no justifiable reason for coming up with this suggestion, you may wonder why am calling this a suggestion ? because thats what we’re hearing in a few days from now. This suggestion will not be executed that much I know. This is a Joke worthy some space in the guinness book of records, and whoever came up with this Joke must be recognised in a very special way and finally the one who approved this joke must as well be recognised and not forgetting those that are in support of this Joke . This went through Cabinet and really the cabinet approved this joke? the cabinet must recorded in the guinness book immediately .

  30. chinyontho says:

    A Ntata ndinkayesa ndinu amisala kapena kuti muli frastrated koma ayi ndithu munakamba zanzeru. Wamisaladi anaona nkhondo. Inutu munaionera patali ziizi nanga lero. Kodi makadeti muti bwanji pamenepa? A magede ndi anzanu muti bwanji Pamenepa? dziko lino anthu ambiri samayang’ana nkhani momwe iliri koma kuganiza mokhota mwandale. Ndiizi lero anthu akutoperani.

  31. bambo phiri says:

    koma ndinthu ine mmene ndasaukila mu paying loan for mulli Fungula kusaira kaonga zoona ambye atikhuulukire

  32. chaiwone wawo says:

    Malawians we are sleeping. Cant we afford protests of the Egypt magnitude? That’s the only way to sort this mess out

  33. Njalayamalamuchiuno says:

    The cry by the citizens is well reflected in the negative comments made by Malawians ever since the intention to sell MSB was once reported. However, the Government’s stand on the matter is only helping to strengthen the citizen’s suspicion of the whole transaction which seems to be out of the public good or badly executed.

  34. nthumboyauka says:

    ppo the 6billion myt as well have been the money DPP used for campaign…no wonder mulli amatasa. nanga a kapito akumasokosa aka alikuti, he wants to be a hero i guess these are issues he shd jump on n entice e publik osati zopusa amathamangirazo…..wake up malawi kuba sikungapose apa

  35. John says:

    Are they serious, paying taxes is a duty… but when people we entrust to spend our tax money ABUSE it like these bunch of crooks. What can we do? Evade taxes!!!

    This hurts, every month end close to a third of my salary is gone…. and for what so these crooks can continue to drive their Range Rovers and Vx’s

  36. honourable says:

    Paying 6bn and sell at 4,9bn . Economics ya DPP imeneyo. If u hv 6 bn why selling it at less than wat u hv ?

  37. chimulamba says:

    Let’s boycott paying tax this is not on,this is the same as cashgate, we need the money but, did parliament approved this, please we need our money.

  38. Mulukunuwa maluku says:

    6 bilion cashgate iyi ifufuzidwenso amalawi titenge tax break kamba zalowa chibwana

  39. Tengupenya says:

    The public and especially the tax payers should force the government to immediately liquidate the securities which the debtors offered MSB in exchange of the loans. Alternatively, the government and MSB must commence bankruptcy proceedings against the debtors. Either action must commence now and be concluded in the same period the government through reserve bank instruments is paying MSB. The intended sale of MSB is another song! Only to say that the order of actions should have been reversed: first Detoxicate the MSB before selling it (MSB)!

  40. Tengupenya says:

    What the govt is not saying is whether the debtors are going to pay back to the national treasury and how that payment can be verified by the public. What the desolate public is not analyzing or saying in their disgust is whether government should have let MSB collapse; whether their government should tax or take over the securities which the debtors offered to the MSB in exchange for the loans or whether bankruptcy proceedings should be initiated against the debtors; whether a class suit should be commenced against the board of MSB, the management of MSB, the secretary to the treasury, the minister of finance, the government, the board of the reserve bank, the governor of the reserve bank, separately or jointly on specified negligence, deceit or attempted deceit of the taxpayer, abuse of official position or authority, breach of trust, gloss negligence of fiduciary duties to the shareholders of MSB and the public; gloss negligence of regulatory powers over banking practices; gloss negligence of due diligence in venting loan applications,; negligence to use or abuse of regulatory powers over commercial banks. Demonstrations will gauge the public mood, but may not move a stubborn government into explaining the due care and diligence it purports to be doing to the economy of the state by taking over the toxic assets from the MSB, or into explaining how the debtors will reimburse the government. Citizen action should include using legislative powers and judicial means to get a redress. Since Government is only a management mechanism of matters of state and Since managers change or potentially change every five years, then the state and the public only has three years from now (May 2015) in which to conclude these matters with the MSB, RESERVE BANK OF MALAWI, GOVT OF MALAWI AND THEIR AGENTS DEEPLY INVOLVED IN THESE TRANSACTIONS. Dzuka Malawi dzuka! If government makes no move, immediately, to liquidate the securities the debtors exchanged with MSB, or to commence bankruptcy proceedings against the debtors, then just know with certainty that the transaction is not for the public good but is for the private good of the debtors.

    1. Dzimvele mu mtolo says:

      A very good analysis and I hope the seemingly clueless opposition will take it from here. Thank you

  41. Yesaya Dziko says:

    Whether recapitalization or not, MSB management must be overhauled for failure to manage the bank and even enforcing declaration of secrecy. Why is it that banks information is just litering around like this? Public know this, the loan were guaranteed by government and its now the duty of the govt to recover these toxic loan.

  42. martha says:

    So i am actually subsidizing the lives of people whose assets allow them to access loans which are worth about one million times my salary??

    THIS IS A NEW CASHGATE!! Public resources being used to sponsor private individuals. Zina anagulira ma galimoto, anatilandila ma plot kuti amangepo iwowo, anapitila kunyanja and we are paying for them?

    Where will mulli brothers be when a tax payer defaults on his loan and akumulanda nyumba?

  43. Phiri says:

    OMG! you mean when the banks are refusing me a K500, 000 loan, I can now be servicing a millionaire’s debt? Where is justice here? God plse take over and act, for in the Book of Amos you clearly are against this kind of evil!

  44. Garu Wa Garu says:

    Peter needs to justify to Malawians why he did this. Atumbuka ndi Alomwe ndi amodziiiiii. Ndichifukwa chake amadana. Pacompany pakahala Ntumbuka head ma manager onse ndi Atumbuka. Vise versa ndi Alomwe. They are alike. This is a good reason for impeachment if he does not explain well for what Peter he has done. This is un acceptable.

  45. Guley says:

    Ichi ndi chifukwa chokwanila chopangila demo. Demo iyi yokha sindingajombe. Atate wanga ka ngongole ka fodya munalanda chirichonse inu a MSB chobsecho malonda sanayende bwino. kuwalanda katundu ndi tindalama tonse tomwe adagulitsako ka fodya pomwe sikhwaya zikulipiridwa ndi my tax?? Ngati simukufuna demo tax yanga yokha musayikhuze. Ndipo demo ishoshedwe basi

  46. ZUMA says:

    Chuma chobera wanthu wosauka

    Bwerani kuno kujoni baba mutchoneko

  47. Mkonda Malawi says:

    Its time all Malawians woke up and marched into the street,What has Mulli’s loans and other Dpp sympathisers has got to do with us?This backdoor president is taking us for ride we Malawians and its me we did something to show our anger.

  48. Kenkkk says:

    I don’t understand this deal, it is turning my head upside down. Is this 6bn being paid to msb for loans taken by mulli and other debtors of the bank? If so, is the govt then going for mulli and others to pay back the 6bn it has paid to msb?

    Or is this money being paid to mulli and others and the govt or msb gets nothing in return? If, so why?

    These deals are too big and in my opinion the govt cannot just decide without full parliament approval. The same with the jet issue, parliament need to decide not just Peter and his cronies making unilateral decisions.

    I personally urge parliament, csos, and the opposition to intervene in these crucial issues which are being unilaterally and dictatorially decided by Peter. Parliament is being bypassed in these crucial issues which it ought to be involved and decide.

    Otherwise the whole country is being taken for a ride.

  49. zodiac says:

    kodi a malawi basi tingokhala kumaonerera za utsiruzi, 14 million people tingoyang’anira ndalama zathu zikupita just like that what a shame, tikudikira mzungu anene kaya atiuze kuti nzolakwika ndiye tiyambe ma demo, peter asatitengere ku ntoso choncho it was our votes which put him where he is now pano ukupanga zoziwa wekha u have betrayed us, mumkayenda nthawi imene ija mwati tikulembenI ntchito mukumvesa chisoni lero mkutipanga chipongwe chake chimenechi zoona?

  50. arkmm says:

    I’m not believing what I’m reading, I’m saying I’m not reading what I’m understanding. is this true?? now you gift trapence, Michael mtambo and john kapito, this is a tangible reason to organize mass protests, let us protest until this decision is rescinded. these companies should be declared bankrupt and be immediately sold. mulli Ali ndi ma business ambiri ku mozambique and he externalizes forex more than nobody in Malawi and believe you me, much of this money he borrowed from MSB he used to boost his companies in Mozambique. should we pay for that on his behalf?? this could be a joke of the century. saulos chilima, are you there??? did you approve of this?? shame

  51. Damalekani says:

    fanny joshua wa eranive anamwalira kalekale.ngongolezi amatenga ndi john joshua the husband.

  52. kwanda mngonyama says:

    alomwe kuba, kubera mavoti kuja nkhani yake inali imeneyi kodi?

  53. lesta says:

    Well KKK ndizoona ndikuwerenga apa?

  54. kk says:

    Cash gate!!!!

  55. John M says:

    Bingu anauluka, koma anatela. Muli ndi Peter mungauluke chotani koma muzatela!!!!!!!!

  56. mona says:

    Koma Iwe msowoya ufera za Eni, umayankha nkhani ngati ndiwe ochenjera dikila tithana nanu a galu inu, mavoti aja mumabera cholinga chinali chimenechi eti

  57. Twaniche says:

    Civil servants sanalandile march salaries yet govt is paying for dpp supporters such personal loans. God, look down upon yr people.

  58. Life says:

    This is one event that demands the entire citizenry to protest. Everyone should demand that these companies should declare bankruptsy and whatever remains of the companies should be taken by government. This is more important probably than anything we have ever been involved fighting for. Please, Gift Trapense, you are the only Man who can handle this. Chonde aise, don’t let this bunch of stupid people still our money. This is clear cash-gate.

  59. ujeni says:

    Why cant they sell Mullis property, what is so special with him that normal business process are not followed when it applies this mafia

  60. Shawa says:

    then u expect to clap hands for u?

    5bn that is 1/4 ya 20bn cashgate error.

    if Boko Haram comes to malawi i wil join.

  61. ujeni says:

    K6bn cashgate it has started start counting. Add K6bn to K92bn mosova mavota vota

  62. kadyankena says:

    Only time will catch up with u Peter kuzunza a malawi osalakwa pompano mudziwona cell mwapenta ija mulowanso ana Mulungu sangakhale kulira masiku onse amoyo wawo. Adzatimva.

  63. Malawianmom says:

    APM DONE IT AGAIN FOR THE THIRD TIME THIS WEEK. ARE YOU TAKING MALAWIANS TO BE FOOLS?

    MALAWIANS IF YOU DONT LIKE APM LEADERSHIP, PLEASE WEAR BLACK EVERY DAY,THAT WAY HE GETS THE MSG.

  64. nana says:

    I don’t understand this deal

  65. mona says:

    Chonchi tikamaphwanya Ma company a Mulli nthawi ya Ma demo muziti tikulakwa dikilani munya a galu inu

  66. Goba says:

    I’ll not air out my views, I may end up in jail

  67. Paul Chiringulo says:

    Apa zinthu sizikuyenda bwino chifukwa anthu onse amene mwawakhulukira ngongole ndi olemera koma anthu amene akuvutika ndi ngongole za Maldef mpaka kulowa mu cell chifukwa cha K300,000.00. Ngati kukhululukako ndizenizeni muwakhululukirenso anthu amenewa.

  68. Kangaroo says:

    Have these Companies been declared bankrupt????????

  69. Mulophana mulophaa says:

    Atumbuka ndi alomwe ndiwomwe atchulidwa kuba ndalama apa. These two tribes are hopeless. With Peter mathanyula and muli mathanyula mudzafa ngati agalu. Fotseki

  70. vyaya says:

    Kupusa amalawi you will just write and write, condemn condemn thats all.

  71. Kadakwiza says:

    Useless government. That is why Malawians are killed in foreign countries. Useless selfish leadership.

  72. Animal Farm says:

    Koma dziko lino ndi la fodyadi eti? All Malawians are equal but the Lohmwe tribe is more equal than others. All Malawians will do is bark bark on this space while this government gets away with this. Do we have an opposition in Malawi? This is the time to prove their worth because if they don’t then there is no point in voting for them come 2019. This issue has come at the right time when the Budget session of Parliament is opening next week.

  73. mtichimwitsa says:

    Mxiiiiii

  74. cash gate says:

    Mmene ndikuidziwira DPP, Sizachilendo izi, ndimmene amachitila anthu awa, samaganiza za wanthu a dziko lino

  75. Mapwiya Muhlupare says:

    what collateral was used to dish out such huge amounts? Koma akanakhala munthu wamba bwenzi mutamulanda nyumba kaya kagalimoto mkumatulutsa munyuzi kuti anthu agule mutengeko zanu. Tsopano anthuwa akoma pati kuti musawalande katundu? Dziko lozungulila ili pakhalekhale chouluka chidzatera. Peter and your cronysm szikutengelani patali. Ukhuluku munauyambira patali. Mulli brothers muli ma share a Bingu nde sakufuna chuma chomwe anagawana kale cha Malemu Bingu chilipe ngongole imeneyi. Mwapita ku USA kukakonza ma account omwe mumati kuli ma million a Asset declaration asanayambe kufufuza. Koma ku USA samabisa kanthu bi. Ngati deposit za ma million munakachita ulendo uno tizadziwabe basi. Mpaka kunamizila conference yoti kulibe cholinga chofuna kukakonza ma account omwe munapanga declare mulibe dollar. Shame! osangotenga holiday bwanji?

  76. Wake up Anthu says:

    Mutharika is Mulli and Mulli is Mutharika. They looted under Bingu and now they looting again. The donors will never restore aid to Malawi if our leaders steal in this manner. Peter Mutharika is proving to be more corrupt that Bingu. Zero deficient Budgets mean zero money for development but enough for Mutharika and Mulli to loot.

  77. Eya! says:

    HK, take your cool. Ovota tili pheee mmizimu.

  78. Joseph says:

    Pheeeew… I will never understand this Lomwe tribe…. Just like I will never understand people who practice satanism.

  79. tuvitwana says:

    SAD, MULLI UZAFA IMFA YOWAWA. A MALAWI WE ARE REAL fools OTHER COUNTRIES THIS IS REASON 4 MASSIVE DEMOS.
    KAPITO UR A FOOL. THIS IS TIME TO CALL 4 DEMOS.

  80. Namachende says:

    Kodi muli mumamutenga ngati ndani inu a dpp inu kumatuwa eye kumalemera ati muzimupempha kkkkkkk timakuwonanitu mukamayima line tima colora tanu ku chigumula kwa chiswe

    1. Think Tank says:

      Wake up Malawians. This is a recipe for vote rigging in 2019. DPP is doing everything with impudence because they made their minds never to let power go. To me it makes clear sense why they did everything possible to prevent their party and country constitutions in 2010-12 prevail. To avoid being querried on their actions. In 2019 there will be far greater rigging than 2014 for continuity. in that way,there will be no one to institute investigations on what they are doing now.

      1. Khuth'upa o'Machemba says:

        So you are already giving up on the 2019 elections, and handing DPP the win on a platter? It certainly seems so.

  81. Joseph says:

    Pheeeeeeeew……

  82. Bob says:

    Oh no.

  83. KAMCHENDE says:

    They will neva change Muli is their god

  84. mgawadere says:

    Kuberedwa a Malawi ndithu mpaka pamenepa anamadya bwino kulipidwa ngongole ndi ifee zoona koma nyani Mutharika ndi anzako ngati Boko Haram ikumva kulila kwanga apa itithandize basi

  85. Thomas says:

    Pete Munthalika and his cabnet instead of taking that 6bn and buy fertilizer to loan farmers to start farming since SA is sending three quarters Malawians illegal immigrants back home

  86. Hk says:

    Bullshit dpp govt.of muthalika no vote from taxpayers in next elections. You are disgusting mxiii!

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