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.

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dee kay
Guest

Lawyer uja wa cashgate uyu atiuza chani iyeyu?

GN Phiri
Guest

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!!

chosadziwa
Guest

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.

Kabononkhola
Guest

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?

Kamunyanje
Guest

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?

Wabude
Guest

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

Wabude
Guest

CommentParliament is offside

Man R
Guest

Useless layer.

Balamanthu
Guest
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… Read more »
Balamanthu
Guest

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?

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