Joyce Banda trashes Finance Bank claims in Mail and Guardian

Malawi’s former President, Joyce Banda, has denied allegations by the Mail &Guardian(January 23, 2015) of South Africa that she issued an operating license to Dr. Rajan Mahtani, Chairman of Finance Bank, for the re-opening of Finance Bank in Malawi.

Banda: Mail & Guardian should have endeavoured to seek an official comment from the Reserve Bank of Malawi

Banda: Mail & Guardian should have endeavoured to seek an official comment from the Reserve Bank of MalawiREP

The report alleges the former Head of State received millions of US dollars from Dr. Mahtani to facilitate the reissuance of a banking licence to Finance Bank.

The office of the former President has described the report as “shockingly flimsy, irresponsible and deserving no merit at all”.

Banda’s office wonders why a “reputable media house like the Mail & Guardian” would stoop so low to even peddle falsehood and deceit, when the truth is just “a phone call away”.

According to a statement released by Banda’s office on Monday, January 26, 2015, “it is normal practice” for any Head of State to receive or to take courtesy calls of many people including investors.

“The President would then direct such investors to relevant authorities,” reads the statement in part.

“Indeed, Dr. Mahtani met Her Excellency Dr. Joyce Banda when she was President of the Republic of Malawi. Dr. Mahtani was accompanied by his lawyers and senior members of Finance Bank management.  Their mission was to negotiate the reopening of Finance Bank in Malawi.

“The former President appreciated their interest to reinvest in Malawi but the responsibility to issue banking licences falls in the hands of the Reserve Bank of Malawi, as a regulatory authority for the registration of commercial banks,” continues the statement.

According to Banda’s office, the former president referred the matter to the Reserve Bank of Malawi to conduct of a ‘due-diligence’ exercise to ascertain whether or not Finance Bank may be allowed to return to Malawi.

The former Head of State was not informed of the final outcome of that ‘due-diligence’ exercise until she left office in May 2014, according to the statement.

The statement emphasizes that under the law, former President Banda had no authority to authorize the reopening of Finance Bank, let alone any bank, because that did not fall under her President’s jurisdiction.

“The former President is therefore utterly dismayed that she should be blamed for the re-opening of Finance Bank in Malawi eight months into the DPP administration under His Excellency President Peter Mutharika.

“The Mail & Guardian should have endeavoured to seek an official comment from the Reserve Bank of Malawi to ascertain what role former President Banda played in the reissuance of a license to Dr. Mahtani to reopen his Finance Bank in Malawi. It is blatant abuse of media freedom to make unfounded and unverified allegations against the former President,” reads the statement Nyasa Times has sourced.

Zambian-based Dr. Mahtani operated Finance Bank of Malawi for many years, across the regimes of United Democratic Front (UDF), under Bakili Muluzi and the Democratic Progressive Party (DPP) under the late President Bingu wa Mutharika.

It was under Bingu wa Mutharika’s regime that  Finance Bank was closed  after it allegedly  flouted laws under the Banking Act.

Finance Bank of Malawi was set for re-opening in the Capital City, Lilongwe, on Monday, January26, 2015 after it was stripped of its licence in 2005 following allegations of money laundering activities and alleged use of ghost accounts.

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41 thoughts on “Joyce Banda trashes Finance Bank claims in Mail and Guardian”

  1. phodogoma says:

    A coward who runs away from her home before her cashgate issues are tabled in court of law. Pray hard that no cashgate offender do not mention you as a witness. possibly Kasambala should not mention your name as his witness. Otherwise the government of Malawi is ready to make use of ‘being the member of INTERPOL’. The same American police will take you to Malawi by neck. The world is very interesting. INTERPOL mebers in USA are waiting the day when they will come to Malawi with a cashgate offender ( chief for that matter who knows the guy that killed shot Mphwiyo. You better just come back here to defend yourself. You are a human being and its a human being who breaks the laws. Imagine Jacob Juma RSA president and his cash corruption issue. Juma constructed his house using government funds. He was drugged by his people and now he is free.What about APM , you dragged my uncle left and right and now its time for him to revenge on you. Why are you just running away. Ife a DPP tibwezere mtengo kapena tibwezere Msonda. No we want big fish. Hopefully you will be free as well after we have dragged you left and right. Mama come here to see Kenie Msonda who is now growing thiner and thiner. He is eating grass in Lunzu.

  2. This higher post of president requires someone to consult widely before taking a decision.Bcz it looks like most Malawian presidents lacks consultation bcz they regard themselves as very high & powerful to take any decision on anything even if it falls to a certain government body.Hence puting themselves in hot soup at the end of the journey.

  3. J.Banda says:

    Point taken,Koma kumwamba kukakhala koka,koka zonsezi ndi inu anthu andale kapena mwina tikanasankha mbusa ?Zokamba bwenzi zikusowa? Lero zaonjeza mpaka kumatukana chonchi ngati sife a Malawi hiiiii dziko lija !!! ?

  4. Cimenti says:

    Mukuonekera nga’mbatu Amai. Anakati anene a boma munakati ndi ndale koma anena akunja

  5. PUTEN says:

    Siyani Zokoka za amayi

    Pepani ndi kuti siyani kuwakoka amayi

    Ine Gwegwe ndi nawakwela amayi

    Inuso tiyeni achinyamata modzimodzi muwakweletso amayi

  6. Ngongoliwa says:

    KU RSB KULI KATANGALE OSATI MASEWERA AYI AMANGWETU. TIRI PAMENETIRIPA CHIFUKWA CHA AGARU A KU RSB. PANO ALI BIZE KUULUTSA MAFIGARA ONAMA A MSB KUTI IKUFUNIKA K23BN KUTI IDZUKENSO PAMENE CHILUNGAMO CHAKE NDI K3.6BN YOMWE IKUFUNIKA. KOMA KUMENE AKUITENGA K23BN ALIYENSE SAKUMVETSA. RSB WANTS TO SCARE GOVT AND CUSTOMERS SO THAT GOVT SHOULD SELL THIS NATIONAL ASSET TO INDIANS KUTI WINA ALEMERELEPO. WE KNOW WHAT IS HAPPENNING OUTTHERE!!!!!!!!!!!!!!!!!!!!!!. CHONDE INU A GOODALL MUSALORE ZIMENEZI.

  7. Chibanja tv says:

    Inu kodi mukukhala ngati agonthi bwanji? simukudziwa kuti abiti ndi munthu okuba bad, chachilendo chomwe mukufuna kumva ndi chani? Ife zisatikhuze ngati mukufuna public sympathy izo ndizanu koma apa pali nkhani apa!

  8. SEEINGG SOMEBODY ON DEVELOPMENT AND BUSINESS MATTERS IS NOT BARRIED,BUT IT IS UP TO THE PERSON TO MEASURE THE SITUATION.

  9. wanangwa says:

    JB shud not refute allegations. Why did JB allow Bharat to meet her? If she was smart she shud have refused by giving an excuse not to meet him. For a bank to be closed, it means it has done something very bad. Why did RESERVE BANK allow these thieves back?
    Malawians and all companies of goodwill should shun this bank. No one shud open an account with it. This Indian shud confine his operation to Zambia. Shame on RBM.

    1. Think Tank says:

      stop being too political. You should now be ashamed. Read the latest on this. Its your Gondwe who issued the licence. I always say nowadays dpp is peddling every lie they want to disgrace opponents. I

  10. Pauline Jones, USA says:

    Malawi Malawi Malawi, this poor country in the remotely central African region; when will journalists from Malawi write good about their state President or former state Presidents?
    This story that appeared in the mail & guardian newspaper of South Africa was given by a Malawi reporter answering to the call ” REX CHIKOKO”.

    I personally called the newspaper to first verify the story with Reserve Bank of Malawi before publishing it, but as they say in journalism “NO STORY IS STORY”.

    Shame of you Malawi journalists!!!!!!!!!

  11. Witness says:

    Chuka chimene Peter akumusungira ine sindikuchidziwa.This guy has done everything to gain as a person and Malawi to lose as a country.These are the times i miss BINGU amene uja akanakhala atatchetcha kale.RIP Man Bingu sob sob.

  12. Now it’s true about those boxes at Chileka air port that midnight , before elections.

  13. Koma JB ndiye mukumusaka.Konzani chuma cha Dziko Agalu inu.Ma floods njala nthenda nsanje konzani zimenezo.Munthu wakumudzi amene munamubera mavoti akamarira inu tsoka.Muona ma floods ndi mu Kamuzu highway momwe afika mpaka Kamuzu preccession road ma floods.Mmalo mopempheta mulimbana ndi JB.Simukuonabe kuti zimenezi zikuonjezera tsoka?? Samalani ganizani bwino mozama

  14. tutuli says:

    RBM should never have re-issued a license to this bank. I worked in the closed Finance Bank, and I wouldn’t want to work there again.

  15. Che mkwepele says:

    Ujeni, wanena zoona.

  16. Makiu says:

    It is the same guardian that interviewed her and she told the world that Peter and the chief justice wanted to steal her government

  17. Kanthu says:

    Osangonena wa anzanu wanu FMB mbava number one paja ma account akuba a malemu ali konko kuchokera ku mota.Palibe wabwino apa pano akuthawitsa chuma kupititsa ku Botswana.Tione zitha bwanji ndi RBM.

  18. Abiti bakha says:

    We expected that comment any way…azikani zoti ananena yekha nanga zobisikazi

  19. apao says:

    Ma envolpes aja ameneyo, mind u

  20. jeff says:

    Com on guys we need investment in malawi thare is nothing wrong JB inviting investment

  21. Big man Munthu wa Mulungu says:

    thats what politicians are all about

  22. Bongololo says:

    The single most important question Joyce Banda does not answer is whether she accepted the millions or not. Tafotokozani bwino pankhaniyi!

  23. Bwitoto says:

    Koma Joyce ndiye mukulimbana nayetu . Boma munatenga koma mmalo moti mupange zinthu zothandiza anthu mukulimbana ndi munthu wa mayiyu. Kodi walakwa chani? Dziko ndi ili likukukanikani kuyendetsa ife anthu olandira pa 14th ( pensioners) sitinalandire mpaka lero. Zopusa basi. Angulu anzanu angokhala ndwiii nanga si zagwera pa mphuno. Muzingopwetekeka cha mkati basi. Zitsiru inu.

  24. chandiona says:

    Bank imeneyi inali komkuno ku malawi ndipo amadziwa kokachita apply chifukwa chiyani amakafusa Dr JB, Mayi uyu ndi waziphuphu kwambiri ameneyu afufuzidwe zonse za cash gate ameneyi afufuzidwe chifukwa Mayi ameneyu ali ndiphili yakuba kwambiri

  25. jadabush says:

    This woman….

  26. Jonathan says:

    Kodi munthu kuti ukumane ndi Mai Joyce Banda ungapange bwanji? I just want to kiss her, nothing more. A Malawi tizinyadira kuti tinali ndi President wa mkazi, Tiziyamba ndife a Malawi. Tinali ndi Chief Secretary wa mkazi komanso tili ndi Chief Justice wa mkazi. A Malawi, tiziyamba ndife chonde.

  27. Mayi a Priscilla says:

    Komatu ma refutations opangira muli kunjawa ayamba kuchuluka mayi . Why don’t you just come back home and show the world that you have nothing to hide or fear? Zayambatu kudabwitsa tsopano . What are you afraid of?

  28. Malawi is one of the countries where by you see politics controls business or the other country i know is Zimbabwe.Where by in other countries its the business that controlls politics.

  29. I think the action which was taken here came from the upper boss despite that it doesnt fall in the presidents durisdiction.The relevant authorities from Reserve Bank couldnt do otherwise than accepting what came from their upper Boss.Truth is needed plz you already know how influential are political figures in Malawi especially the President in this regard.

  30. KING SOLOMONS PALACE says:

    IF INVOLVED IN MONEY LAUNDERIN THEN BANK AT OWNERS RISK

  31. ....Pako says:

    Koma pali zambiri zina simukwanitsa kumatsutsa muli kutali tabwerani kumudzi kuno kaye muthane nazo izi. Mtsogoleri wa kale amakhala ndi ntchito yoti agwire ndiye inu mukujombatu ntchito

  32. Alungwana says:

    Incompetent media house! A plea to the RSA papers; you will tarnish your image if you work with the Malawi media bcz alot of Malawian journalists are politicians. The guardian and mail MUST take note

  33. Noisey Politician says:

    Instead of applying directly to Reserve Bank, why did Finance Babk go through JB? A matter from a senior is likely to sway towards what the boss says. You have just told us that you influenced the decision Madam JB.

  34. Ghost of Kamuzu says:

    Mahtani is a money launderer and a corrupt man. Now that Zambia has elected a new President just wait and see what President Lungu does to this criminal. Malawi should not let criminals like Mahtani operate in Malawi. FULL STOP.

  35. Zefa says:

    Your Excellency Dr Joyce Banda, Chonde zibwerani kuno ana anu akuvutika. Kukakhala ku Prison tikakhala nanu limodzi. Koma bwerani kuno musaope chili chonse. Otherwise anthu awona ngati mwathawa pamene inu mukugwira ntchito zina kunja. Come back you will continue later.

  36. ujeni says:

    We have only one reputable journo, His name is Raphael Thenthani, the rest are madeya.

    1. Elhapo says:

      Agreed. It is revolting for so called journalists to make unfounded allegations. Any official will meet with anyone. That alone is not a crime.

    2. Ngakha says:

      what? you r crazy, what does Tenthani do deserve respect. Floods have damaged this country massively ask yourself how he has reported such damages? I personally wish your assesment could improve and change.

  37. kumunda says:

    So this is how you have been stealing the money. Now we know how cash gate started. Keep on telling us…. the truth is coming out slowly but surely.

Comments are closed.