Commercial banks in Malawi are warning each other to take extra care when dealing with two ‘businessmen’ Ernest Kaonga of Maranatha Private Schools and Elvis Nserebo of Matindi Private Schools.
It has been established that the two are using “tricks” to obtain huge amounts of loans from different banks and make it harder for the banks to access the funds.
An insider said bank officials have started talking to look at the loan applications of the two businessmen with a ‘critical eye’.
Sources said Kaonga and Nserebo are using same tactics when they want to get loans by providing ‘flowerly title deeds’ as security for their loans.
“When the banks start the process of getting back their loans, they find that either the title deeds contain an unfinished structure or indeed a vacant plot or sometimes a house which does not belong to them,” said a source privy to the dealings of the duo.
“You can see what Kaonga did to FDH Bank; he used a technical flaw in the law and sued the bank for loss of business when in fact he was supposed to be paying back the loan. He even managed to get Sheriffs pounce on the bank,” said the source.
“From FDH he is going to Petroda, remember he rented Keza office park for his school and somehow the school caught fire. He is claiming millions of kwachas from Petroda instead of him paying Petroda for the use of the building. I will not be surprised if Sheriffs visit Petroda soon,” added the source.
It is also the same with Nserebo who is also playing hide and seek with banks.
He got a multi-million Kwacha loan from one of the commercial banks for his Agri-Feeds company which folded after he had misused the loan.
Instead of pumping the money in the business, Nserebo used the money on flashy cars and a sprawling mansion in Bvumbwe, according to sources.
The bank has since repossessed some of the cars and the mansion and the company, Agri Feeds has folded up.
“Nserebo too uses the same tricks as Kaonga of giving false securities against his loans in banks and now the people in the bank have realized that these two are not honest and are treating them with caution,” said the source.Follow and Subscribe Nyasa TV :