Malawi Savings Bank closure claims rejected—Goodall

Finance, Economic Planning and Development Minister Goodall Gondwe has assured Malawians, mainly Malawi Savings Bank (MSB) customers that the bank will not be closed by March 31 2015as claimed by some media reports.

Gnndwe: Government is looking for strategic partner

Gnndwe: Government is looking for strategic partner

Malawi Savings Bank

Malawi Savings Bank

According to the Minister, despite the on-going search for a strategic investor, the MSB will continue to transact business normally.

“The fears that the Bank will be closed by 31st March 2015 are not true and are based on a misrepresentation of facts by the local media on the implications of failure to comply with capital adequacy requirements.

“Contrary to those views, the Bank shall continue its operations. The search for a strategic investor is aimed at strengthening its capital position to enable it competes favourably on the market,” said Gondwe.

Government is searching for strategic investors to buy a controlling stake in the bank in the government owns 100 percent of its shares.

At the moment, First Discount House (FDH) offered K4.9 billion for 79 percent of the bank’s shares.

FDH, founded in 2008, is a 100 percent subsidiary of FDH Fiinancial Holdings Limited, whose owner is business mogul, Thomson Mpinganjira.

According to Gondwe, government has decided to withdraw from being dominant shareholder of the bank to improve the operations of the financial institution.

“The interest is to run the bank in a more efficient way. All the countries out there did the same with their postal savings bank and they are doing fine,” said Gondwe recently at a news conference in Lilongwe.

The discussions and proceedings regarding the partnership of the bank is supposed to be through my March 31 2015.

“The Registrar has given us up to 31st of this month or else we risk the closure of the bank,” he said.

According to Reserve Bank of Malawi (RBM), the MSB is weighed down by bad loans and it requires a $48.3 million in capital and liquidity by June to satisfy Basel II financial and regulatory requirements or risk being struck off by the central bank.

However, the sale of the bank met some resistance from lawmakers who successfully pushed a motion in Parliament last month halting the sale to pave way for investigations on its viability.

The MPs argue that MBS is the only bank that has wide coverage in the country, especially in rural areas where their constituents are located.

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24 thoughts on “Malawi Savings Bank closure claims rejected—Goodall”

  1. Ntchona says:

    If you cant sell the bank what are you going to do with a bank that is not profitable. Are we being plain foolish? Lessons learnt are that leave issues of economics to those who understand them. Secondly organizations must be led by competent people and Malawi government doesn’t seem to learn.

  2. Winston msowoya says:

    Well come to the Disney land of the Muthalika brothers.Once again,Peter has fooled Malawians as well as himself by uttering lies and unsubstantiated on his declaration of assets which were acquired through corrupt and dubious means.In fact,his revelations on the ill gotten assets have not only astounded the suffering people of Malawi,but also the entire donor nations who foot the bills for our nation.On the whole and in fact,Peter,being in the highest office of the land,he should have known better the ramifications of poor judgement.Peter and his late brother Bingu underrated the intelligence of Malawians.They very well acknowledge the fact that the assets in question,were not,I emphasize,were not. US pensions,but the remains of his brother’s loot.In the world of social media,this shameful and hideous news has become viral and make Malawians the laughing stock of the world and political lepers of Africa.Peter has nowhere to hide his nefarious heritance,but to hand it over back to the people for the reconstruction of their beloved mother Malawi.Peter,Malawians in diaspora demand overwhelmingly the return of the stollen funds part of which,was used to rig the elections of last year.ALUTA CONTINUA,VENCEREMOS.

  3. Chikankhamapiri says:

    Boma likadaganiza kaye mofatsa lisanagulitse MSB.bankiyi ikupezeka madera onse m’dziko muno.ngati pali bank yomwe imathandiza anthu akumudzi ndiye ndi msb.choncho anthu akumudzi avutika.kodi mukagulitsa bankiyi amalawi eniake ndi phindu lanji lomwe apeze?ndikuona kuti lakula ndi dyera moyo ongofuna kudzikundikira chuma nokha chonde tumikirani amalawi moyenera

  4. namatetule says:

    Is it just me or not who seems not to understand the position of MPs? The MPs’ argument for not selling and or closing down of MBS,I don’t buy it!!! Ok,so,we should not sale MBS (and noone is talking about closing down,not yet!!),why?Because it serves many people in the rural areas? Really,people of Malawi,what kind of mediocrity is this?This bank needs to be sold,why?For starters,this bank was being run by an incompetent CEO who compromised and flounted all due dilligence standards and procedures.Secondly,the bank has been involved in money laundering through cash gate associated transactions.Thirdly,members of parliament were the real beneficiaries of the lousy and easy credit which was being touted by the bank itself.The real beneficiaries were not the,because the common man,the plebian was being given tough time even to borrow one thousand kwacha.There was alot demanded from the plebians as compared to the politically connected lazy individuals who now cannot pay back the bogus loans they got from MBS.Now you tell us that it must not be sold?It will be sold!!If only sanity must be brought into this bank,let Thom and his cronies buy this mediocrity of a bank and make it efficient.Government has no business running banks in the first place.
    Finally,when we will decide not to sell then obviously we must keep it afloat by bailing it out.Now I am not sure if I am ready to put my taxes,hard earned taxes,into bailing out a bank that messed up on its own operations.I would rather my taxes be spent on some hospital in Ntchena chena or Enukwenu rather than see it go down the drain to keep MBS afloat.Its high time we let this go.In truth,MPs who don’t even pay taxes to begin with(a whole lot of tax evaders if you ask me) do not have the constitutional and professional mandate to oppose the sale.Reasoning as above should inform them that there is only one logical conclusion to this issue.Sale.

  5. From Chitipa to Ntcheu and Nsanje and Chikhwawa in the South, (apart from Lhomwes), we are organising mass demonstrations against Muli and his friends. If they don’t refund the billions they stole from MSB in the name of loan, they will dance to the tune Alhomwe songs. 30 April is yo final day to pay back.

  6. mzwanya says:

    In fact the bank is stupid not to demand the same from Mulli. What’s the security that he offered. On another note politicians are resisting the sale because they want to continue abusing the bank. Even if it is sold will it stop banking or start selling oranges. If the rural people are bankable then the bank will continue operating in those rural areas and if not the bank can’t be providing social service as others would want us to believe . On the other hand I would encourage people like Njovuyalema to ask their constituents to start village bank and they want to access portable banking services then they can as well use airtel or tnm that have a wider network .government has no business running commercial banking and this should be left to the private sector with government coming in as regulators. Once more I support the sale of MBS

  7. Njalayamalamuchiuno says:

    Comment If we are so serious about serving the rural masses,then a parternership arrangement( Governmemt/ Private parternership) is the way to go for MSB issue. There is, however, need to review MSB’s opperations so that it becomes a viable and more sustainable organisation.

  8. Kanyimbi says:

    Bank imeneyi igulitsidwe:Muli ndi anzake nthawi ya Bingu anakongolako vindalama zankhani,mu ulamuliro wa chair mbava ngati zodwezinso zinatengako vindalama zankhaninkhaninso, Nthawi ya amai athu ajanso Lutepo anatenganso vindalamanso.Ndibwino igulitsidwe chifukwa andalewa amaigwiritsa bankyi molakwika.amene alukakamira kuti isagulitsidwe nayenso akufuna akazalowa m’boma azibere bankyi..

  9. Gulitsani ndiwanu katunduyo ife phindu lathu palibepo.

  10. Ben Banda says:

    Thom Mpinganjira and Ben Phiri woyeeee

  11. Kenkkk says:

    Mulli are dreaming of floating on the London stock exchange, yet failing to pay back 3bn it borrowed from Msb. They making a mockery of this incompetent govt. The govt should be suing Mulli and recover the money. Why is it not doing so? Only 5bn is needed to make msb viable if you ignore the stupid and corrupt rbm assessment, and Mulli alone has 3bn of that 5bn!!! What a shame and disgrace??

  12. soko says:

    Comment all daily newspapers are awash with articles of banks selling property of defaulters. And how come muli is so sacred that no sheliffs can confisticate his property, imagine fdh is offering less than what moya is keeping. Should the whole country lose a bank becoz of an individual

  13. pamsundu says:

    what is special with this sale when the jet and 65 companies were summarily sold

  14. Patriot says:

    Kaya zanu izo, ife sitimadhilana ndi banki yachi midzimidzi.

  15. This is anew malawi thumbs up for our. MPs you are really representing the poor masses in the village

  16. Vyachalo says:

    Customers,transfer your moneys to other banks,otherwise your money will be no where.

  17. ujeni says:

    This is nonsense, why not tell Mulli to payback the loans he got if the problem is liquidity

  18. pent says:

    What will be the consequences to the customers if it is sold? Please teach me

  19. pent says:

    What will be the consequences to the customers if it is sold

  20. marvelick says:

    Govt should sell 50% & maintain a veto of decision…..

  21. Atcheya says:

    Any sensible customer of the bank would panic with such senseless speculation and end up closing his/her account than remain in suspense.

  22. Ndikutelo says:

    Dpp umbava unakulowani m’magazi,mulibe chisoni ndi anthu osauka.

  23. Rightiousness says:

    The best way is to help castomers than to put anxiency in their heart by talking alot.

  24. Munthu Wa Chuma says:

    Thanks to our MPs for halting this transaction as it doesn’t sound right and proper based on timing and reasoning. Why does Government wants to stop being active shareholder while planning for launch of another Bank. it doesn’t make sense

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