Malawi banks warn each other on Kaonga, Nserebo ‘loan tricks’

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.

Officials from commercial banks talking to each other

Officials from commercial banks talking to each other

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.

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41 thoughts on “Malawi banks warn each other on Kaonga, Nserebo ‘loan tricks’”

  1. marika says:

    maranatha ndi school ya ukape ndi yakuba, ngakhale ana amawabera ngakhale ma cell phone ndi masuitcase a zovala chifukwa cha umphawi. Alibe ndalama awa komanso amangolemba unprofessional administrators. Headmaster alibe say ku maranatha. Azipunzitsi ndiye kananja. Anakwatira ka mwanapiye akawongawa. Kodi munamulekeranji chiphadzuwa uja? Kodi mumangoyamba ma business mulibe ndalama? Nkhanza mumachita pomabweza ana atalipirako half school fees zija kani inunso mumalephera kulipira ngongole? Shame on Maranatha.

  2. GRM says:

    Are banks becoming a cartel? Stupid banks they refused me a pay day loan of 500,000 nkumati it is equal to my salary Ali nditenge 250,000 yet I was to give all the money once I receive my salary. This guys are crooked. Now they are crying louder coz akumana nawo mbava zinzawo. Stupid banks

  3. MGULU says:

    SPECTATOR WALASA, AFTERALL MULI BROTHERS BAND USED SAME TRICKS FOR HIS COMPESATION(S)!! NOW MNGULU WINA AMUCHENJERESA APA!!!

    NTHAWI ZINANSO TIZIFUFUZA BWINO, NTHAWI ZINA A DEFENCE AMATHA KUYIKA DALA WEAK DEFENSE ILI PLAN.

  4. Fatso says:

    Akhaulitseni ma bank onse.More fire.If i remember well ma bank akhala akukana ma credit bureau.Iam sure zimenezi akanawauza a bureauwo ngati mmene achitira kuno ku RSA!Kaonga tiye naye Mpinganjira waba MSB.

  5. Kondwani says:

    Gulugunya U Can’t Attack The Whole Innocent Tribe. Ndiwe Chindere Tikurowenge.

  6. gulugunya says:

    Kaonga is professional thief. K785 million kwacha is just too much for Malawian bank. The Kaonga is Mtumbuka and the judge who handled the case is also Mtumbuka. I smell a dog here if not a rat. Another Tumbuka is up again for compensation over trivia matters. Tumbukas are thieves. The other tribes watch out with Tumbukas. Mark my texts.

  7. Najere Chitekwe Gelevulo says:

    Kubera bank…..no crime. Atibera kokwanira. FDH ndimatemberero chifukwa chogula bank ya MSB amalawi akulira, iwo nkumasangalala. Inenso I am suing you for K1bn. Cashier wanu sanandipatse moni lero

  8. spectator says:

    Wakuba akabeledwa amapenga heavy. Palibenso amene amanva kuwawa ngati wakuba akabeledwa.

  9. Diwa says:

    Za chamba imeneyo nde bank kapena finca, unprofessional ma bank a m briefcase.

  10. parice says:

    bwana james stop confusing malawians, how can one use tricks to obtain a loan from banks,ngati ma bank akupangidwa zimenezi then dey shud blame themselves for poor security,osangoti kungodzuka uko kuzaononga cv yanzanu,those pple they work day n night to rich where they are,work hard the success will follow u,siyani majerasio.

  11. Balamanthu says:

    ERNEST KAONGA. You see now karma is a bitch what goes around comes around ! SERIOUS. CROOK!

  12. Balamanthu says:

    This guy Ernest kaonga ,used our house house as a collateral and the bank gave him millions and never repayed us the loan now the bank repossed the house , he’s a big time crook never to be trusted!!

  13. Balamanthu says:

    The banks have crooked many people for so long, why are you crying when only too people have crooked you? Thats a taste of your own medicine. If i may ask, how houses have the banks snatched from defaulters?

  14. pido says:

    Banks with this information will soon be dragged to court for defamation case. The names of these people have been injured hence require restitution through courts. Hey.

  15. Khongo says:

    As long as the fraudsters are Malawians Nilibe Polobulemu…

  16. Ndudza says:

    Is there any reason why the source of this information in a report be not biased? The banks operate according to laws of Malawi. The wise banks rely on legal protection from the same Malawian courts of law. No one would provide such kind of a service unless you are not operating in the country as a bank. It’s very easy to see, finding you wrong according to me but the law may have a different application. If I take things for granted, I shall blame even God for sparing someone I selfishly find not worthy it. The banks must be smart enough to provide their services bearing in mind their need of the same at one time or another. The courts of law in Malawi inteprete the law best or who else in the business world? The banks must be well versed on legal applications and implications otherwise the more need of discrediting the court’s ruling while there shall be a need of their service as all equally deserve it which is a contradiction only if one can see better than this.

  17. Chimwala says:

    Malawians are genus go everywhere in SADCC they r either rich or rulers these two r masters of the art they can make it where ever they go do stop here guys go within the region and eat real money.

  18. olira says:

    Mmmmm. These banks must have been fast asleep when Bingu’ cronies wiped out people’s bank – MSB. They were still snoring when Peter used my taxes to clean uo the MSB mess left by his brother’s bad boys.

  19. s-kay says:

    Mr selebo has build businesses that employ quit a hand full of Malawians. and all so made possible by some of the loans taken from the banks and as much as there are rumors around how he obtained such I believe he is an honest business man who takes risks which may either fail or succeed. looking at his history in the business world many of which are a success. must we blame him for rewarding himself for his hard work saying he wastes Money . the question you must ask yourself is must we still live as salves when you have worked to make yourself a name. I’m just saying we should be able to appreciate the hard work and dedication of our fellow Malawians who help boost the economy of Malawi and drive us forward..

  20. Ken Banda says:

    Critically review all the kaongas mbiri zawo zambiri ndi zomwezo zokonda kuoonjola pa malo .Others are Spys.

  21. ameneyo says:

    I WONDER WHY CREDIT RATING BUREAU IS NOT USED BY THE BANKS.

  22. bob says:

    It is very sad to note that Malawian are jealousy of each other. I believe these two young Malawian business men deserve a pat on their shoulders. For uplifting the standard of education in Malawi. Of loan defaults I wonder why a defaulted can be awarded compensation for defaulting to me it’s a clear misrepresentation of facts in the media. Yachuruka ndi nsanje let’s emulate the examples given viva Maranatha viva Matindi

  23. therere says:

    Elvis Mserebo matama basi, mpaka wagulitsa Matindi radio station ku Times, Star ku Timveni sanati azafa imfa yowawa

  24. Phiri says:

    If two people or two institutions are in disagreement over a pertinent issue and that the two fail to solve the matter amicably it is then the court of law which has the mandate to solve the matter through its jurisdiction instrument. I hear the disagreement between Maranatha and FDH has been ruled in favor of Maranatha. why is it that all Banks in Malawi have to team up against an innocent Malawian who has been faulted by FDH due to the feeling of superiority and multibillion holdings in its accounts? This is unfair treatment and and banks should learn to respect Malawi rule of law.
    G.M Sindazeruka

  25. mbwenu mbwenu mbava basi

  26. Zack says:

    He also owes Blantyre Water Board a lot of millions in arrears. The then Chief Executive of BWB, Andrew Thawe was protecting him when Maranatha Private School was occupying Keza Building.

  27. Zoona says:

    Banks are stupid they respect the already rich people who fail to pay back loans while the needy are always cautious and honesty when paying back but they are blocked to get the small loans in favour of the rich guys! Stupid!

  28. Steve salima says:

    You mean banks are too dumb these days that they can issue loans without properly verifying the collateral? I guess this is what you get for giving loans to the already rich.

  29. kambwali says:

    These are genius boys, thumbs up guys keep up

  30. The Analyst says:

    O…………………………………………………………………………………………………………………………………………………………………………………………….O
    Malawian banks tend to relax their risk management procedures when dealing with seemingly affluent people. Koma mphawi nde kumupanga screen mpaka mkati . . .

    Just think of it . . .
    . . . How could the banks just take hold of certificates (mere papers) without verifying the existence of the said property for collateral?
    . . . Are we sure that if anyone presents some papers claiming they own something, the bank will forthwith release funds without a due process of verification?
    . . . Many people are born thieves but only lack opportunity to practice their thieving demeanour. Inu a ma bank izi simukuzidziwa bwanji?

    These two guys are smart hardcore thieves but you banks need to be smarter, hence not relax in your credit risk management precocess.
    ………………………………………………………………………………………………………………………………………………………………………………………………………..
    Also, on tricking the banks into paying the guys when the opposite should have been happening; just shows lack of expertise on the part of the banks’ lawyers.
    . . . vuto lolemba nchito ana a malume for bank secretaries, even though they have no nothing ndi izi.

    Banks need to have sharp lawyers who can easily argue-off these guys.

    Otherwise, relaxing your risk management procedures coz you are dealing with anthu a ndalama or kulembana nchito pa chibale; will do Malaiwian banks and the economy, no good.
    O…………………………………………………………………………………………………………………………………………………………………………………………………..O

  31. VYOTO says:

    THE BANKS’ STAFF HANDLING LOANS FOR THE TWO BUSINESSMEN MUST BE FIRED FORTHWITH,THEY HAVE OBVIOUSLY BREACHED THE CONFIDENTIALITY RIGHTS OF THE TWO.SECONDLY, THE HIGH LOAN REPAYMENT DEFAULT RATES WE WITNESSING ARE AS A RESULT OF THE HIGHER THAN BASE LENDING INTEREST RATES THE COMMERCIAL BANKS ARE CHARGING .IT IS UNFORTUNATE AND UNFAIR BUSINESS PRACTICES BY THE COMMERCIAL BANKS THAT ARE ENABLING THEM REALISE ABNORMAL AND SUPER PROFITS.

  32. munyane says:

    Loan Gate imeneyo

  33. judo says:

    theft by trick is a crime, police should intervene

  34. Ze Roberto says:

    Zanu izo zisatikhudze ife. Ife kuti tipeze loan olo ya K500,000.00 koma zonena mbweee! mpaka timangosiya. Fotseki!

  35. wa ku Mitchesi kujaaaaa!!!! says:

    The banks are getting a taste of their own medicine: They have been robbing us in broad day light for too long. Not feeling sorry for them at all. Aaaaaaaaa.

  36. mama says:

    Do you banks carry out a due diligence exercise? How come you find out that the security was an unfinished structure after a loan default?

  37. Achiphwisi says:

    Aphedwe basi

  38. Dont waist our time says:

    Eh!!!
    You guys do not waist our time here. Bring them to court for the law to take its action, Do you fear them as you are making a lot of noise through this paper????

    1. ramsay snow says:

      nanunso inu, waist tanthauzo lake ndi chiwuno. mzuzu corner certificate

      1. Balantidium Coli says:

        At first I thought it was just a mistake but I realized it was for sure when I saw the same word written twice____________________Oh my Malawi!!

  39. Greencardless Malawian says:

    ITS VERY BAD WHAT THESE TWO ARE DOING KOMA ZISAMAKOMELE MBUZU KUGUNDA GALU

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