Govt takes over Malawi Savings Bank toxic assets

Malawi government is writing off the loans obtained at state-owned Malawi Savings Bank (MSB), most of which were borrowed by private businesses and individuals who are financiers of the ruling Democratic Progressive Party (DPP).

Ian Bonongwe - MSB  boss has been told by Mangani: resolved to hive off MSB toxic assetsneeds new capital

Ian Bonongwe – MSB boss has been told by Mangani:  Government resolved to hive off MSB toxic assets

msb letter 1msb letter

Treasury has asked the Reserve Bank of Malawi (RBM) to issue K6 billion promissory notes to take the toxic loans off the MSB books.

According to a letter reference number ST/3/10 dated April 20 2015, Secretary to the Treasury Ronald Mangani instructed RBM Governor Charles Chuka to issue the promissory note to MSB to clear the toxic assets.

Mangani said the maturity of the promissory notes have been spread from 2016 to 2019 and will be maturing at K759 million every quarter.

Reads the letter: “As you are aware that Malawi Savings Bank Limited which government wishes to dispose of had toxic assets amounting to K6 074 773 871.70 as at 31st March 2015. The government has, therefore, taken the decision to clear these toxic assets through the issuance of an interest bearing promissory note.”

In a letter to MSB chief executive officer Ian Bonongwe, Mangani said: “I write, therefore, to inform you that the government has resolved to hive off MSB toxic assets amounting to K6 074 773 871.70 and to replace  them with a promissory note in this regard, I have already requested the Reserve Bank of Malawi to issue the promissory note for this purpose.”

In another letter also dated April 20 addressed to RBM Governor Charles Chuka, Mangani instructs Chuka to issue the promissory note.

“As you are aware, the Malawi Savings Bank Limited which government wishes to dispose off, had toxic assets amounting to K6.074.773.70 as at 31st March 2015, the government has, therefore, taken a decision to clear these toxic assets through the issuance of an interest bearing promissory note.

In this regard, we would like to instruct RBM to issue an interest bearing promissory note whose interest rate shall be at the rate of the 91-day bill of the first Treasury auction in any quarter plus two percentage points….,” reads the letter to Chuka.

Ministry of Finance spokesperson Nations Msowoya and Finance Minister Goodall Gondwe have kept their comments close to their chest.

Government is seeking financial strategic partners to finance MSB which is struggling to meet Basel II requirement and the bank needs a financial injection of K23 billion.

The Public Private Partnership Commission (PPPC) recently unveiled FDH Financial Holdings Limited, owners of FDH Bank, as the only bidder to become the strategic partner after offering K4.9 billion for the 75 percent of the bank’s shares.


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68 thoughts on “Govt takes over Malawi Savings Bank toxic assets”

  1. matako says:

    This is complete madness and robbery of tax payers in broad day light. Government should make public all the names of business and individuals that borrowed money from the MBS and have not paid back. Other wise we will take to the streets and start to deal with this abuse of authority by ourselves. How can govt claim the bank has toxic debt while those who borrowed are still enjoying the loot. This is the usual DPP syndicate stealing our money just as they have done in the past. This not acceptable we want transparency on this issue. The president can not continue to please and reward his cronies using tax payers resources. If APM can not order his DPP thugs to return the money Malawians will do so by any means necessary. Our country our resources!!

  2. Chidzukulu cha Akwitusya says:

    Kkkkkk political game….so this is it

  3. let those with loans pay their debts then u sell it.

  4. masa says:


  5. Kenkkk says:

    For you dpp thugs to attain any credibility in the eyes of the Malawians, you need to do just one simple explanation. Despite the promissory note, please Explain to us how the debts by mulli and others still owed to msb are going to be paid by the debtors?

    Mulli and others have assets which can be seized to pay back msb loans they took. So their debts are not really toxic unless you refer to some other debts we don’t know.

  6. i smell death of an oppressor

  7. syamboza says:

    I was about to be confitcated of my house beacuse of the loan I took ku indebank.I have paid this loan 400% more than I took. and they still say Ihave arreas to settle amounting to 1M. can the government please issue a promissory notes.dikuvutika zedi I have sold everything including my Neno garden but all to no avail. which door can I knock????

  8. Chaka says:

    You Dpp Guys, That Money You’ve Agreed With Mulli To Swindle Is For An Ordinary Malawian, Listen To Our Views “DO NOT SALE OUR BANK” Using Our Money To Pay Someone’s Loan Is The Worst Thing For You To Do. I Tell You Unless You Rig Our Votes Come 2019. You Favour Mulli Coz Is A Lomwe Or Khokhola. Dr Lazarous Chakwera Pls, Jack, This Is The Time To Show Your Ability. It Even Fit For Impeachment..

  9. Charlie Hebdo says:

    DEBTGATE. I am made to repay my small loan every month from my inadequate salary and default attracts a penalty. Is Mulli more Malawian than the rest of us?

  10. namatetule says:

    The removal or disposing off of toxic assets is one step.The other will have to be the removal of Ian Bonongwe.It was under his watch that this mess was created.His team needs to be fired and replaced by competent people.If this step is missed,then we will be rewarding negative behaviour and mediocre performance.

  11. kusolola says:

    chakwera please jack up eeeeh. this is the time we need you most and we need your verbak warning to the ruling party and the government. why is the government afraid of declaring its debtors as bankrupt? please other countries akumatiseka chifukwa cha uchitsilu wa mapoliticians athu. please lets work up and fight these empty headed politicians. i cry for tembo now.

  12. brutsha says:

    Ana anu akuphedwa ku Joni wa osachita manyazi ndi kutengalapo phunziro kuti ndalama za boma zofunika ku samala kuti mwina dziko mkutukuka. Why not make those who owe the bank to pay back? We black people are really shit!
    My God!

  13. Kenkkk says:

    Dpp thugs we told you so. These people people and the govt are more heartless than animals.

    Why use a meandering road than a straight one? The straight is that all debtors including mulli should pay their loans back to msb to make it viable. There is no need for the promissory note, what for?

    Where on earth do we find a creditor protecting his debtors? That is exactly what this dpp thug govt is doing!! You dpp people are really thieves Holding the whole country at ransom for your selfish ends.

    I suppose this promissory note of writing off toxic debts will now make msb worth while and stand on its own feet, be viable again. Msb could have been viable again by forcing these thug debtors of yours to pay or face sale of their assets. The debtors are now laughing all the way to the bank.

    And you call this dpp good governance? Protecting your thieving? You haven’t changed, same leopard spots!!!

  14. john says:

    One thing I don’t like Dr Laz Chakwera as LOP ndiimenei the guy is quite he will only oppose this after public outcry yet the guy is paid by us to provide constructive opposition.This is a serious issue how can our tax be used to pay off debts taken by the pvt citizens?

  15. petro says:

    Pamenepa mundimasulile bwino, mukuti bona lalamula kuti afute ngongole zomwe sakubwenza. Kappena kutinbad debts. Bomalo ndindani? Walamulayo ndindani? Mukati boma mukunena ndani? Munthu ameneyo waba koopsa. Simungamusiye mulli ndi ndalama ngati zimenezo. Ndikutenga ndalama za amphawi kukabweza ngongole. Apa chifukwa chokanila kukhoma nsonkho chikukwanila. Bola mukanamulanda Kaye chikole ndikugulisa zopelewelazo ndikumanena kuti tilipila, mulli kumusiya alibe chilichonse. Chifukwa choikila MCP m’boma 2019 ndichimenechi.

  16. Geo says:


  17. German wings co-pilot says:

    Malawians, musayembekezere kuti kusintha utsogoleri kuthesa mavuto. Tilira ndipo sitinati, kutsogoloku nde mavuto nde alipo. Chomwe inu ndi ine tingachite nde kungoyang’ana kwa Yesu ndi kuchita chifuniro cha mlengi apo biiiiii

  18. Mulli is a thief.He got payment from National Assembly without supplying goods!

  19. che guevara says:

    Financial experts should help us with this.Nyasatimes should have sought explanations from an expert.

  20. chigawenga says:

    How can we develop with corrupt people in office? how can we just sit back and do nothing when those in office are abusing our resources? How can we let the administration swindle our resources through their friends like Muli? Why can the bank not reposes assets of those that owe us. Government should not use back door to fund its political activities by writing off this debt. If they do we should all rise up!! take to the streets and stop this crazy madness. Corruption at its best!!!

  21. Zikomankhani says:

    Malawi Congress Party needs to unpack this promissory note issue in language that ordinary citizens can understand: What exactly is the cost to the tax payer? Are the people/organisations who took the toxic loans simply going to walk away scot-free?

    The DPP government is not going about the sale of MSB in a transparent manner. It is therefore up to MCP to ensure that Malawians are not shortchanged in the disposal of this national asset. Why is the DPP Government not insisting that the collateral for these toxic loans be sold off to recoup the loans? Cashgate convicts’ assets are being recovered by the Government – why is Government coy to recover the assets of these toxic borrowers?

    Should a poor villager really be paying Muliis’ debts for him – is this fair?

    An independent valuation recently put the value of MSB at not less than MWK62 billion. Seventy five percent of this would be MWK46.5 billion – Thom Mpinganjira should not be allowed to come with his ridiculous offer of MWK4.9 billion again…

  22. Jozza says:

    Last kicks of a dying horse.kumeneku ndiye timati kupha nthawi ndiye zaka zimathamangatu. Soon we will sing same song.

  23. matako says:

    This is absolutely bullshit! how can poor Malawians pay for rich DPP financiers like Muli. This is a great cause for demonstrations or even a coup. We must get read of these corrupt and clueless rot. This is our country we have people not paid hospitals with no medicine and we sit phwii and do nothing when resources are being abused. Malawians when will we learn to say enough is enough? I would urge all concerned Malawians to take to the streets.

  24. Good Men says:

    Joke of a country. Thugs in suits…stealing in day light than any bank robber can manage.

  25. chindindi says:

    Hehehede koma ndiye ziliko

  26. musolin says:

    Ng’ombe izi, don’t use our taxes to pay this demshit loans. Akanganya okuba inu…

  27. Phiri says:

    Foolish commenters, boma kufuna kugulitsa ma share mukuti ai, its not good to sell all government properties, then government has heard your cry by investing more mukuti ai akuteteza mulli ndi ma DPP financiers so if you were you what could you do.

  28. Dr Mrs Ben Phiri Mutharika says:

    Its not the will of Malawians but the will of crooked few namely Pitara , Maxon Mbendera , Gospel Kazako, and some judges. Without these idiots , Malawi wouldn’t have this shit.

  29. NATCHIDWE says:

    Anthu akufuna kudziwa dzeni dzeni za kubwereketsa ndi kuchotserana ngongoli yodziwika ngati imeneyi. Zonse zalembedwazo ndi zoona potsatira dongosolo la za chuma. Koma palibe nzeru yanthu yachibadwidwe, izi kope ndi pesiti pa Malawi pano. Akhothi chonde thandizani anthu onse chimodzimodzi. Ngakhale tikudziwa kuti mphamvu zanu dzofanana,

  30. juvinalis says:

    My questions. On what situation or condition can one be decreared bankrupcy?
    On what circumstance can some be snatched or his properties be taken by the bank in order to crearout his ngongole? NBS Yokha ndi imene imatha kulanda?

    Moti MSB inalephera kulanda ma properties kwa anthu DDP?

  31. This Is Malawi. says:

    Do Malawians retire? Bonongwe still working! Wow!

  32. Jahmes says:

    Is this what is called Quantitative easing?

  33. We shall call it “TOXI GATE SCANDAL” A MALAWI YIMENEYI TISALOLE ! Anthuwa mbava zo thelatu. Akufuna kuti bela poyela yela! Amagidwe agalu amenewa.

  34. Bololo says:

    25. Angel of doom. Do your know what disposing off of hiving off and replacing with a promissory note mean? It means the toxic loans (bank’s asset) should not appear on MSB balance sheet. Instead its the promissory note that will appear in place of the loans. What will then happen to the toxic loans? will the govt be able to recover the loans? you are a joke to think we don’t know financial terms and transactions.

  35. mbani says:

    This is Malawi vote wisely

  36. Samuel nyoni says:

    Kungoti languageyo ndi imene yavuta koma nkhani ndi yoti mullie anatenga vindalama ku msb & gvt is shielding him by saying msb has bad loans & yet they know kuti ndi mullie anatenga ma billion koma safuna kumutchula ask mwanamveka he knows it well

  37. ine wanu says:


  38. Angel of Doom says:

    99.99999999% of Malawians can not understand these commercial arrangements. There is nothing wrong with what Government has done.

    Malawians are so used to translate everything into politics, and Nyasa Times does not help by reporting with a political slant. What you should be doing is asking those in the know, and then write to inform your readers what exactly is happening.

    Malawi government is not writing off any loans. The problem with Malawi is our limitedness of knowledge.

    Very few have heard of an IOU. If you have an IOU it does not mean you will not pay back. Not long ago companies used to use Bills of Exchange to buy goods from within for their shops.

    These days I do not know if anyone can raise a bill of exchange, let alone know what a bill of exchange is.

    Nanji Promissory note,(IOU) ndiye chisimu.

    1. Charlie Hebdo says:

      Here is how it works. RBM releases the cash required by MSB on the strength of promissory notes issued by Government. Who pays the amounts promised upon maturity of those notes? Government. Where does Government get its money? Our taxes. What then happens to debts owed by Mulli and company? Ask DPP Government. Perhaps the link below may help people understand promissory notes:

  39. Chivundu says:

    Thats The Will Of We Malawians.Don’t Cry! This Is Just The First year,u Will See The Real Behavior of These So Called DPP.U galus! Don’t arrest pple who deserts paying taxes because what u are doing is daylight lobbery.Dyani ndi nthawi yanu koma dziwani kuti mulungu akuona komanso azanu sanafune kusalamulira dzikoli.Shit!

  40. peter paluma says:

    koma abale nkhaniyi mukuimvetsa… nyasatimes mukusocheretsa anthu.. do u know toxic assets? do u know an interest bearing promissory note? pakunenedwa zokhululukira ngongole apa? kodi journalism yanu munapangira kuti?…

  41. nyavizwazwa says:

    Their greadiness will cost them life. They can be looking respectiful people now, the Gudolo, the Chaponda, the mulie, the profesala but their respects will end atthe grave yard. whether musoleum or no chiliza, death is death, whether casket or mphatsa burial is burial, so what. Leave them to enjoy he world to the fullest and end there. Teh cry of a poorman is always held by the Most High God.

  42. nyavizwazwa says:

    ubwino wake zonse nzachabe, mlaliki akutero, Mulli will die burried with nothing so what.
    Only the one slinging to Christ is the one saving wealth,

  43. powder says:

    why?why?why?why?why? somebody took the money and buy trucks plus buses, is in business, how can you say write off the loan? you guys no!! this is day robbery sure. iam a dpp member but on this one its thumb down! why? just give out the money? ok you wont cover the whole sum but get the properties and sale! why do they ask for surity? anthuni mwatani? we were pride of a number of thing but mind you all those can be wiped by one mistake. take it or not.

  44. kodi anthu mungopanga comment zinthu zosaziziwa eti… pamenepa akutanthauza kuti onse amene ali ndi ngongole ku MSB asainile interest bearing promisary note, so that ndlamazo abweze within 91days with agreed interest…. kkkk amalawi ndichani

    1. kaphirintiwa says:

      you are a fool. do you think somebody who has defaulted repaying their loan for 10 years can now miraculously repay it in 3 years with even higher interest?

  45. Aferazao says:

    All this is happening to shield the crafty Mulli, but one day all you thugs, including Mtumbuka Goodall Gondwe will pay a big price. What these DPP people need to remember is that the living God is always awake and monitors all that revolves around us.

  46. BANKER says:

    SICK NATION!!!!!!!!!
    SICK LEADERS!!!!!!!!!!
    SICK DECISIONS!!!!!!!!!!!!



  47. Bololo says:

    Malawi will NOT be developed with this mediocre thinking by government officials. Why doesn’t government clear the toxic loans only when the ones who took them have been declared bankrupt? Why taking my PAYE, the poor villager’s VAT on salt, sugar… and giving it for FREE to Mulli and others well to do already? Why is the secretary to the treasury reversing the general logic of finance? In simple terms, this is a new face of cashgate and we are all watching ndwiiiiii!!!!!!

    1. Charlie Hebdo says:

      And Mulli had the audacity to bid for Indebank when he cannot repay his loans at MSB. This shows that he has the ability to repay the loans but cannot do so because he is being shielded by the thieving DPP Government.

  48. Chimwemwe says:


  49. Koma Inu says:

    Wakuba ndi Wakuba basi. The system never make politicians accountable for stealing such that DPP takes the money from people very clearly supported by document and the Malawians keep on smiling. Only the poor get imprisoned for stealing chicken, not politicians for stealing billions even if there is evidence. Check cashgate, who is in prison? Accounts Assistants? Is there any politician in prison for cashgate? NO.

  50. Cocoon says:

    How can you just Give 6 Billions to a person called Mulli, Why? Malawians protest now or else you will have big problems, Malawi is not going to improve and we are all going to suffer!, five year of this behaviours is not going to help anyone. Mabvuto aliko ku Malawi, Njalaaaaaaaaaaaaa iyo.

  51. Deficit says:

    A promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms. If the promissory note is unconditional and readily salable, it is called a negotiable instrument.

  52. Akatswiri says:

    Dont cry for me cry for your vote

  53. Tsotsi says:

    Mukulira chani,,,,mesa mumati profffessalla,,nde ndameneyo mukhaula simunati…..tigulisaso ADMARC…

  54. kaphirintiwa says:

    some people are just born lucky. imagine, a few individuals being given 6 billion free kwachas! are you really there god?

  55. Malawi Eye says:

    Congratulations to all fellow Malawians we have all just become shareholders to MSB via our taxes. It means all of us have paid our taxes to Mulli who has 4bn if the toxic assets Which is 67% of the bad loans.


    AMANGWETU CHONDE CHONDE NGAKHALE Mpang’ono pomwe? BOMA la DPP KUBA kasachita nako manyazi. Tawauzeni amene anabwerekawo angotigulira mankhwala kapena zakudya kuno ku nsanje

  57. Ezekiel Peter Ching'oma says:

    mbava za dpp

  58. Msambiri says:

    Could you please explain in English what this ‘write offs’ and ‘promissory notes’ means. you mean ngongole zasanduka grants?

  59. ambuje says:

    this is no less than cashgate and should malawians allow it happen nobody in the cashgate cases be jailed. shit!!!

  60. Mwananjovu says:

    This is very stupid. Please DPP don’t make me regret my vote. If you continue like this, just know that is the downfall of DPP government and I will organize demonstration against this move. mxiiiiiiii.

  61. MAYO MAYO says:

    Kuno ndi kunja pangani zomwezo

    Koma vzizakutsatani

    Ndatha ndine ngwazi

  62. Joseph says:

    So that was the DPP plan all along. Now that the MSB cant be sold, they are going for the juggler. It’s really a pity what is happening to malawians. Very sad. And yet DPP is called the gvt of the poor. My foot!

  63. Tsikulokufanyani says:

    Hedeeee!!!!! Paja DPP ikalowa m’boma imangoyambitamo kalikonse. By the way what message are we sending to the donors with this monkey tricks monetory economics?

  64. mwene says:

    This is DPP government day light robbery of our hard earned money!!!! Should we really continue paying Taxes??????

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