Lawyer asks MPs to stay away from Malawi Savings Bank sale

One of the private practice lawyers in Malawi, Wapona Kita has asked parliament not to interfere in the plans by the executive arm of government to sell the state-owned Malawi Savings Bank (MSB) saying government erred by consulting the parliament on the matter.

Wapona Kita:  MSB sale controversial

Wapona Kita: MSB sale controversial

Kita told a local radio that government was not supposed to consult parliament on the matter as it has no mandate of enforcing a law but just to make it.

“In the first place the executive was  not supposed to consult parliament on the sale of Malawi Savings Bank but now that they have realized that it made a mistake, they can go ahead and sell the bank,” he said.

Kita said the parliamentarians should act within their constitutional powers of making laws saying in this case the duty to enforce the law lies in the executive arm of government through the ministry of finance and all those working under him.

However, Kita has faulted the government for failing to manage the proposed sale of the state owned Malawi Savings Bank using the existing laws accusing it of adopting a process he says is creating confusion and emotions.

Kita said government could have just used its executive powers granted by the laws created by the legislators to implement the deal.

The Malawi Central Bank recently said in a report that the MSB was weighed down by bad loans revealing that the bank also needs some K24bn in capital and liquidity by June.

Government says selling off the bank would strengthen its financial and operational capabilities in the ever competitively growing commercial environment.

But parliament argued that the importance of the bank to rural communities in Malawi outweighs the economic argument and justification for its sale.

Parliament is therefore pushing for the suspension of sale of the bank to allow broader consultations with members of the general public.

A statement signed by the Acting Clerk of Parliament Roosevelt Gondwe says parliament seeks to solicit the views to help shape the deliberations of the matter during the next sitting.

And ironically, only FDH Bank Limited expressed interest to buy the stake.

But parliamentary committees for Legal Affairs and Budget and Finance have announced plans to seek legal redress in courts over the matter.

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

82 thoughts on “Lawyer asks MPs to stay away from Malawi Savings Bank sale”

  1. dee kay says:

    Lawyer uja wa cashgate uyu atiuza chani iyeyu?

  2. GN Phiri says:

    To imagine the whole MSB Banking entity is to be sold for ONLY K800 Million! Watch out, there is a lot of Gurus behind who stand to benefit from this!!

  3. chosadziwa says:

    Make Laws MPs do not interfere with interpretation. Mufuna mupitirile kukatenga ngongole zosabweza. Review qualifications for MPs we have enough educated people now who should be able to challenge their so called party leaders.

  4. Kabononkhola says:

    Lawyers as usual. The judicially is grown too much wings. MPs are peoples representatives, if the lawyers is saying they should shut up, he is promoting dictatorship. This is the same way Muluzi sold companies behind peoples backs, and Mr Lawyers is in full agreement. Really?

  5. Kamunyanje says:

    Lawyers as usual. The judicially is grown too much wings. MPs are peoples representatives, if the lawyers is saying they should shut up, he is promoting dictatorship. This is the same way Muluzi sold companies behind peoples backs, and Mr Lawyers is in full agreement. Really?

  6. Wabude says:

    Comment
    The role of Parliament is clear why encroach in Executive arm?

  7. Wabude says:

    CommentParliament is offside

  8. Man R says:

    Useless layer.

  9. Balamanthu says:

    This lawyer is useless,not knowledgeable of the law and probably ignorant and senseless.Here we are trying to sale a government asset where he avers that parliament should not be involved.What kind of law and logic is that?.This asset was created by an Act of Parliament and is owned by Malawians who are represented by Parliamentarians.Is there any logic why parliament should not approve of the sale of such a Big Bank when the august house was involved in its creation?.Lets go back to its creation, was the related law not passed in parliament to appropriate some resources for its creation?When expropriating the same, why shouldnt parliament be involved?.Kuwerenga munasiya kale kale ntchito kubera anthu poti mwabvala chikwangwani cha ma lawyer.

    By the way, if I was a parliamentarian, I would have floated a bill requiring that all firm accounts of lawyers,accountants should be audited annually regardless of size.Amenewa amangokhalira kumatibera.Akalandira ndalama zathu zama damages amangogulira ma benz osatipasa.Kuonjezera apo,misleading the country with such archaic views on such important matters

  10. Balamanthu says:

    I am not an Economist ,neither am I a lawyer or an accountant.When I see educated lawyers like Wapona Kita mislead the country like this, I start feeling that there is no hope for my country.Sale of MSB is some mode of privatization.I dont see how the same cannot be tabled in parliament when it was not part of the originally divestiture plan by the same parliament.Kodi law yake munaphunzira inu yobera ndalama anthu basi?

  11. umziya says:

    Too many suspicious connections between the highest bidder, the ruler. Chimpwilikiti chokhachokha. Anthuwa ndi akuba, MPs please continue blocking the sale

  12. Loya says:

    Mr. Kitta, I do believe that one of the most improtant functions of Parliament is to provide oversight over the Executive. Thats Constitutional! Stop these small minded reading of the law!

  13. Sale the entity when Muli pays back the loan which he got when Bingu was in power.

  14. Kanyimbi says:

    The members of parliament want the bank not sold because they benefit by getting loans and then fail to repay. Let this bank be privatized and when these politicians default the loan, they will have their assets taken by the bank. Please sell the MSB.

  15. golden eye says:

    All the debates. Do Malawians benefit anything from MSB? If you say we own it I we sure or we pretend to own something . I don’t think it has an impact on our lives. We only want to own something invisible to us. I hope we could be working hard as individuals to own visible property under our names and signatures.

    Tikungozichedwetsa apa, Andale osawakhulupirira…ndimmene amadyera, palibe chomwe tingapindule..ngati ndagona ndi njala sindingakatape ndalama ku MSB ati chifukwa ndi ya BOma …kaya… tiyeni tisiye kupanga zagulu..fight for your freedom by working hard on tangible things. tikuzichedwetsa…ndichifukwa chake A THJOMU anachita machawi pano angodya money ali phee…imagine dziko lonse mukumukaniza munthu mmodzi kugula Banki..koma akanakhala the so called investors no one could have urgued koma poti mwamuziwa akugula ndiye phokoso..AMALAWI NSANJE SINGATIPINDULIRE WAKULA NDI KADUKA BASI..KALANGA INE MALAWI WOSALIRA ….TZ, UGANDA, RWANDA AMAFUNA ANTHU OLIMBA MTIMA NGATI FDH BANK…….. NO WONDR IT IS DOING FINE!!!!!! MY FOOT DOWN

  16. chakwanuleka says:

    Now we begin to wonder the quality of lawyers we have in Malawi. Did he get his degree through some hook and tricks because this article gives is the impression that he is not bright. How can an institution that came into being through an act of parliament be disposed off without their knowledge. Dull lawyers of Malawi.

  17. sikusinja says:

    Kodi iwe Wapona, wasn’t MSB formed by an act of parliamebt

  18. Chief says:

    kita ndi kasambala mbava zapa malawi.

  19. brutsha says:

    What Wapona is saying sounds so funny. But I know these guys can say anything so long as there is monetary gains even it means tainting personal image that is if at all they have any integrity to protect. It sounds too much on paper. It’s like kholo kubereka mwana ndiye nkumati ayi ine kwanga nkubereka zoti akulu bwanji ine ndilibe nazo ntchito.
    Malnourished thinking!

  20. brutsha says:

    After everything is said and done the message is that in Malawi anything belonging to government is free for all to plunder. When the plunder goes to extreme levels the entity becomes a liability and selling it becomes like a viable solution. But all this are indicators of failure. When people become selfishly individualistic national assets are less cared for. We saw it with Air Malawi. While it was like a sound idea to sell kwacha/sapitwa in Malawi, it was a sound idea in Rwanda to buy it. Simple logic; Kodi olo pakhomo kumagulitsa katundu wopezapeza komanso oti mukagulitsa mukhala mulibiletu katundu ngati ameneyo, ndiye kuti zinthu zikuyenda?

  21. peter says:

    Hahaha! Paja ma lawyer amayimira mbava!!!

  22. James says:

    Parliament’s function is not only legislative.It also plays an oversight role over the executive!!!

  23. APM Gone Bonkers says:

    Ife tinasiya kukupatsani ulemu a Kitta. You apply the law selectively just to accommodate your hankerings.

    Both you and Ralph don’t stand for justice at all.

  24. kwangu says:

    Majority of our MPs are not very conversant with issues, achina Nkhosa Kamwendo, Mchacha etc.

    1. [email protected] says:

      Why can’t you be the MP yourselves . Mangonena basi

  25. MBACHI says:

    A KITA MKAMWA MWAZAZA CHI YELLOW BANS. NDANI AKUTUMANI KUTHIRIRA NDEMANGA PANKHANI IMENEI? AKUPWETEKETSANI.

    1. zione says:

      Even though you are a lawyer you need brain surgery how can government fail to panic those creditors for the bank to repay the money so that then bank will be normalise its duties. Is it a solution to sale it and I know you are the one benefited most and you know the consequences criminal lawyer .If you sale the bank did you know the will close an agency in your district chitipa

  26. titus Scoti says:

    Malawiana, you comment that “so it’s mulhakho FDH”. What’s ur problems? Instead of being proud that it’s a fellow Malawian bidding mukulimbana ndi mtundu wa munthu wa chu Malawi mzanu? Tidzakhala osauka mpaka kale kale ‘coz poyamnba ndife osauka m’mitu yathuyi

  27. Patriot says:

    Uyu ndi Wapona “Wadya chibanzi cha Blue” Kita.
    Useless man.
    Chimnzake cha Kasambara….another crook.

  28. Truth says:

    Wanna may be a bad boy, but he is damn right.

    1. Zamadula says:

      No, he is not right. The National Assembly (which together with the President constitutes Parliament) has other duties as well, especially that of oversight on matters of national interest. We all saw this during the cashgate hearings.

      Night school or Correspondence College lawyers cannot protect DPP oligarchs. A number of DPP oligarchs take huge loans from MSB with no intention of repaying those loans, then another DPP oligarch ‘bids’ to buy the bank? No, things will not be so easy…

  29. haward says:

    Mulli ndi anzake a Dpp ndi amene adakongola ndalama kumeneku, abweze kaye onse zogulitsazi ndiye kuba uku

  30. kapambwe says:

    A Wapona Kitta as it is true that Parliament should make the laws should you as a court officer also interpret the law. Don’t indulge yourself into issues you cannot aford to tackle. Being a lawyer does not warrant you to be a know it all. Keep on assisting your Boss Raphael Kasambala on the defence bench rather than increasing too much food on your plate. Government was voted into office by people of Malawi through their 193 constituencies and government can be removed by the same people if it does not listen from thier views. You are one of the constistuents who carry more power than government through your vote and parliament happens to be your mouth piece not the court. Even those parliamentarians who have gone to court on the MSB Bank matter have goofed. They just need to move impeachment procedures that if government proceed to sell MSB, they just impeach Peter Mutharika and we vote in a new Government that will respect people of Malawi’s views not Wapona Kitta’s illegal opinion. So Wapona Kitta do me a favour and shut up your mouth, if I may borrow Nigeria’s english exprsion.

  31. MSB might be popular and help people in the rural areas but if it does not fulfill requirements of a commercial bank the it should be privatized.The government in its current state might not be capable of running banking business which is currently very competitive.Its also risky for customers to still keep monies with this bank.

    Other state controlled that needs privatization should include:

    ADMARC
    BWB
    ESCOM

  32. Charger cha mutu waung'ono says:

    According to public procurement Act 2003, what is suppose to be done when a National Competitive Bidding (NCB) fail to come up with more than two bidders?

  33. ujeni says:

    What is wrong with our lawyers? MSB is owned by Malawians, the government. You want it to be sold like a private entity, someone has a client with interest here, silly dumb lawyer.

  34. Gutepo Mphwinyo says:

    kodi chanzeru ndi chiani, kugulitsa msb kapena kugulitsa mulli company ltd and many of the properties za ma politicians amene anatenga ngongole ndi kupanga recover ndalama zathu.

    kodi bwanji amalawife tulo.kodi anthu amene anatenga ngongole ku msb sitikuwaziwa? ambiri analemela koma chifukwa choipa mtima osafuna kubweza ngongole ndikumaziona ngati oyamba ndi omaliza kukhala pa ziko la pansi ndi iwowo. ayiwala kuti kutsogoloko kukubwera zizukulu ndi zizukulu tudzi zawo zizafuna kugwira nthchito ku msb konko.

  35. felz says:

    Politics should not interfere with the executive functions…whats wrong with malawi politicians??

    1. ahoy says:

      Felz the wrong thing is msb not recovering money from Mulli. U say no politics. Wat about Mulli loan?

  36. Ahlomwe Ahlomwe says:

    Who can trust Wapona Kita a member of the “Cash gate association?” He is young but has insatiable love for money.

  37. Kangwingwi says:

    Boma limaopa a mtsutso Ndiye limati likafuse Kae zikomo Kwambiri wapona potiziwisa ife otsutsa kuti Mtudzu Wathu uli ndi malire

  38. Gho says:

    Mukuti bwanji pamenepa abale athu a MCP kkkkk kakaka mumayesa zikhala ngati za inspector General ng’ooooooooo

  39. bongozozo says:

    I could not be as competent to comment on this one but somehow I find the argument given by my learned friend Wapona as not holding water. Wapona is restricting the works of our MPs to only one role – legislation. My little knowledge about the roles of MPs gives me three. First being representation. An MP is a representative of the voters. In this case if the majority of the voters aren’t happpy with the sale of MSB then our MPs have a voice. The second role is making laws…which Mr Kita is saying here. The 3rd is discussing parliamentary issues – things like confirming the Inspector General. Is confirming an IG making a law? May be I need to be schooled but my current knowledge nullifies Waponas argument as not true. I don’t want to suspect chi sikono here.

  40. koma says:

    Choka chidya akazi iwe khala chete.mbala ngati nzako kasambala obera pakamwa

  41. Manyasa says:

    Wapona you are an IDIOT!

  42. I think most of these MPs are not conversant with financial jagons e.g liquidity. MPs should at least have Diplomas or Certificate of a certain profession so that they should at least be convesant. Osati ma JC or ma MSCE wa ai., koma salary kumalandira kuposa Graduate wa mboma. Sizoonatu izi. Zimenezi zitheretu. Advetise MP vacancies so that graduate shoul be in parliament. Constituencies shoul be run by councillors.

  43. rasta says:

    I have no doubts that nkhani zinazi mumakambirana kumowa. please discuss serious issues when you are sober

  44. Masoambeta says:

    Wapona Kita, you must remember that law is dynamic and that in a democracy, MPs represent the will of the people and that they can collectively or individually seek legal redress on any matters on behalf of citizens.
    In a working democracy, executive decisions can be challenged through legal channels and the courts must show their impartiality at all times.
    You know where people are concerned on this matter and people are making their representation. Yes the government has the right to sell the bank but the law makers are concerned and hence seeking a redress on the decision.
    Wapona Kita, legality of an act can be challenged as long as such is done through the right channels.

  45. That is the problem in Malawi. Someone who is answering cash gate cases is made as an analyst. Come on Malawian, let’s wake up

  46. anabel mitawa says:

    cashgate lawyers

  47. freedom says:

    This is the bank that was mostly used for cashgate no wonder the cashgate defense lawyer is backing the sale.kanthu ako

  48. vikhalenthena says:

    The buying and selling of banks in Malawi is called ……

  49. His Worship Justice One Thousand Years says:

    A disgrace of a lawyer.

  50. Tiko says:

    I want to hear the input of our president, but as usual he does not give answers when everyone else looks to him.

  51. Angozo says:

    Government must go ahead with its plans nobody should say fwe fwe fwe.

  52. Countryperson says:

    All this noise about “dont sell to FDH” and yet no one else tendered to buy the bank apart from FDH, and this is an open tender process which was advertised in the papers & media?

    The problem lies in the pure lack of objectivity among most of us citizens

    Also, the whole parliament, knowing fully well that MSB will require recapitalization (come rain, come sunshine the difficulties MSB is facing can never be wished away), votes to block the sell without putting up a recapitalization proposal with full powers to Minister of Finance to spend from number 1 account the billions needed to keep the MSB afloat. They then go home & even dare to call the recently concluded session a fruitful session???! What sort of childishness is this?

    Ifenso ma citizens we clap clap without asking the MPs what the alternatives are on the table, therein lies evidence of our passiveness.

    Here are some layman questions to some concerned parties in the matter:

    1. Govt, tell us the methodology for calculating fair value for MSB which in case of a sale or any other method of disposing public shares, will guarantee value for money for tax payers (true owners of MSB)

    2. Privatization Commission- Tell us if listing on the stock exchange was explored & if so why it was not pursued in contrast to the disposal thru tender

    3. RBM- please provide some public information as technocrats, what are the consequences of doing nothing? What is the magnitude of the problem? What is the best way of saving MSB? What is the criteria/rules for accepting new shareholders in case they are an existing local bank? What would happen to competition in the sector if MSB is bought by another local bank?

    4. FDH- What plans do u have for redeveloping MSB for the societal good of Malawians? What strategies do u have to ensure that there is no repeat of this failure which would still pose a danger to our economy although MSB at that time wud be in private hands (I have in mind the Finance Bank saga). What will happen to the many farmers who rely on MSB for agricultural loans? What about welfare of existing employees? Why the interest in buying MSB & not simply grow your existing bank organically?

    5. Parliament- What are the proposed alternatives? Will u authorize Govt to pay the required billions to recapitalize MSB? In case such money is spent, will govt have to cut some social spending programs (education, health, agriculture) in favour of redirecting the funds towards MSB rescue package? What plans do u have, supposing the bank is not sold, which will help turn MSB into an institution that will benefit tax payers by giving them a fair return? What are some proposed legislation to ensure that banks like MSB do not fail in this manner? What does parliament intend to do to ensure that state owned enterprises are ran efficiently & effectively?

    6. Nyasa Times readers- apart from the obvious trashing my posting will likely receive, what are your alternative views?

    Zikomo

    1. Kanthu Ako! says:

      You are not going to receive a trashing, despite the fact that the majority of Nyasa time contributors (Comments) are dunderheads and and outright ignorant.

      Give them the benefit of the doubt, at least they can read, but whether they understand that is a different matter.

    2. M'dyanyama says:

      Countryperson and Kanthu Ako – you are skirting around the real problem that Malawians have with this proposed sale: What is going to happen to the big loans that were given to people or companies connected to the current ruling party (DPP) and are now apparently ‘bad debts’?

      Malawians would not have an issue with the sale of this bank if serious measures were taken by the Government to recover these loans first BEFORE discussing a possible sale. Let’s say Mulli has a loan of MWK3.5 billion with MSB, why can’t MSB call in the collateral and recoup its funds? Why rush for the sale?

      You talk of objectivity – how can there be objectivity if you are willing to gloss over important issues like politically connected bad loans? Our politicians have already destroyed public institutions like DEMATT, SEDOM, MRFC, MDC, MARDEF, ADMARC, e.t.c. because of their insatiable greed. Are you 2 citizens happy to see this go on because most of us are ignorant?

  53. Are you telling us to stay away from presenting the peoples concerns?

  54. Kenkkk says:

    If public interest is very strong and against the sale of a public asset, usually a govt listens and changes its mind despite it having the power to sell. We have seen many govt around the world change their minds on similar issues or put very strict conditions on the sale.

    In this instance it seems social benefits outweigh the financial benefits. Furthermore as only one bank probably already in cohort with dpp gurus has expressed interest to buy msb, then it is likely the bank will be sold very cheaply as there is no competition. The Malawi tax payers will therefore be short- changed.

    As a public asset, parliament has a right to voice its concerns and try to stop the sale. What is the point of a sale when later on the govt will be summoned before pac or financial committee to explain its sale decision and its flaws exposed even more to the people of Malawi? The right approach would have been for the govt to bail out this bank and sell it later at s better price when it is making profits but it seems the govt has no money.

    Fdh, is that not a mwenye led bank? What assurances has the govt put on as a condition for the sale In terms of maintaining the current services the bank provides to the rural malawians? Will the purchaser of the bank be required to maintain the services the rural people get now from msb? I think this should be one of the conditions of sale if public concerns and fears are to be allayed.

  55. big boy says:

    Kita you want to help shooters

  56. James says:

    Wapons,Parliament’s role is not just legislative.It also has an oversight function over the executive mainly thru the parliamentary sectoral committees.MPs have sufficient interest in this matter as the asset of the pole they represent is being robbed by one Thom Mpinganjira who ironically is a public reforms commissioner,aided by his ‘homeboy’ leader.

  57. Chabecheker says:

    MPs have an oversight role over the executive for the benefit of their representatives in a democracy.
    The MPs should propose for recapitalisation of MSB as of right to citizens participation,instead of outright sale to one or few individuals.
    This process will help the bank to rapidly expand and raise the required capital and increase financial inclusion. Malawi has about 80% of financially excluded population that need to be brought into the banking system. This a great opportunity for the voiceless to have shareholidings in MSB

  58. special advisor says:

    Kita is certainly entitled to his opinion. But I don’t agree with his sentiments that MPs should stay out of the matter. As people’s representatives, surely MPs have a “locus standi” in the matter, the executive did not either. Anyway, let the executive follow Kita’s advice, at their own peril. Posterity will judge them harshly. A day of reckoning will certainly come. Forewarned is forearmed.

    1. Peter says:

      Special advisor, I agree with you.

      Actually if the owner of FDH has some wisdom he will have to think twice before messing up his business ventures. Law can protect us but sometimes when the same law fails to protect people for whom it is made, it creates a favourable ground for revolt. Let the president show leadership to avoid tension within the society.

  59. Kokotowa says:

    Fakeni!

  60. Greencardless Malawian says:

    Shut up you tiny piece of corrupt trash!!!!!

  61. Wapona Kita ndiwa cash gate ndipo ndi anthu amene agwesa MSB nde akufuna kuti boma ligulise Bankiyi anthu ntchito zithe komaso iyeyo ndi gulu la Mulli lisabweze ngongole yomwe anatenga ku bankiyi. Should somebody remind me! Kod this bank was set up ndi act of parliament, why sidelining the parliament now?

  62. Bertha says:

    Kita is not saying the truth,parliament has an oversight responsibility over the executive and there is nothing wrong if they are questioning the sale of the bank. Bambo Kita auzeni zoona anthu kapena akupatsani sikono kapena

  63. sikusinja says:

    Don’t the articles and memorandum of association explain some of these things

  64. Kita; a friend to Kasambara the thief; anything better said? He’s only trusted by the devil, educated savages, poor souls and bad offsprings. Wapona Kita and Kasambara believe they are very clever but are devil’l agents who will at the end lost everything from their humanity to sane life. They should know God is in control.

  65. ngangaube says:

    A wapona mukufuna akukhululukireni milandu ya cashgate ija kodi. Koma kundende mukalowabe basi. Those are genuine representatives of the people and they should carry their interests too

  66. malawiana says:

    SO its Muhlakho FDH vying for the bank? Mmmm interesting!

  67. ambewe says:

    In this case the MPs are trying to protect the shady deals which this mulhako guys wants to do with the bank

  68. alukosyo says:

    Ma MP represents people views. Ma lawyers ngati inu ndiye mukusokoneza dziko. mukudziwaa kuti mudya nawo

  69. Mfwethu says:

    Is this lawyer still relevant in Malawi? Cashgater!!!

  70. Kaithazi says:

    Mr. Wapona Kits, are you another beneficiary of this unpalatable deal at expense of many locals? Let me assume your that thinking is not supported by tempting figures from FDH nor government to add legal weight on the matter. In your sober thinking what do you make of selling the only fully owned bank by government though it has potential of being bailed out. Even a man of God, Bushiri would like to see it afloat by pledging his support of bail out. As the only bank that goes rural, don’t you care of these rural people? My main worry is that you are good at twisting arms of your wiged bosses in courts to give your camp an upper hand. No voice for the poor man, rather a survivor tool for the big animals who are more equal than others.

  71. Yesaya Dziko says:

    May APM say something on this matter?

  72. Mwena Malawi Origin says:

    Wapota kita chitsiru iwe ukufuna a boma akukhululukire milandu ya cashgate .Ayi ukagwira ndithu basi mbava izi.

  73. [email protected] says:

    You lost your direction man. Accept that you and your friend has have failed this country . Just shut up and concentrate on the Cases you have. Please leave Malawi

  74. Mulopwana Wa Mamwene says:

    Ok….??????

Comments are closed.