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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Ntchona
Guest

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.

Winston msowoya
Guest
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… Read more »
Chikankhamapiri
Guest

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

namatetule
Guest
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… Read more »
True malawian
Guest

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.

mzwanya
Guest
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… Read more »
Njalayamalamuchiuno
Guest

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.

Kanyimbi
Guest

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..

Wadya Kamwini Kamlondola.
Guest

Gulitsani ndiwanu katunduyo ife phindu lathu palibepo.

Ben Banda
Guest

Thom Mpinganjira and Ben Phiri woyeeee

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