Malawi Savings Bank sale to go ahead despite MP’s disapproval: FHD Bank express interest
The sale of the state-owned Malawi Savings Bank (MSB) will still go ahead despite disapproval from parliament. Public Private Partnership Commission (PPPC) has confirmed.
The government’s divestiture agency kicked off tenders’ process on Monday requesting strategic investors to buy a controlling stake in MSB in which the government owns 100 percent of its shares.
According to the Reserve Bank of Malawi , the MSB is weighed down by bad loans and it requires a $48.3 million (MWK 23.7 billion) in capital and liquidity by June to satisfy Basel II financial and regulatory requirements or risk being struck off by the central bank.
Malawi’s fastest growing bank, FDH k has expressed interest and it is highly tipped that they will buy the tax payer stakes in the bank.
The bank, founded in 2008, is a 100% subsidiary of FDH Financial Holdings Limited (FDHFHL).
But FDH Bank Managing Director Phillip Madinga kept his comments close to his chest when he witnessed the opening of the tenders.
Both Finance Minister Goodall Gondwe and PPPC Chief Executive Officer Jimmy Lipunga deny any wrongdoing in opening tenders.
“We have no reason why the process would change. We get our instructions from the Ministry of Finance and government procedures are driven by laid down process. All the required procedures are being
followed”, Lipunga told reporters.
Lipunga expressed confidence that “the deal will go well.”
Finance Minister said Parliament had no powers to stop the sale.
“Right now the process of identifying an independent valuator to determine the wealth of MSB is underway and curtail the process would attract legal challenges,” said Gondwe.
The sale of the bank has met resistance from lawmakers who successfully pushed a motion in Parliament last month halting the sale to pave the way for investigations on its viability.
The MPs argue that MSB is the only bank that has wide coverage in the country, especially in rural areas where their constituents are located.
Meanwhile, PPPC also opened tenders for the capitalisation of IndeBank. Five companies expressed interest for the purchase of the bank and these include FMB,NBM, Commercial Bank of Africa and MBL Holdings
Follow and Subscribe Nyasa TV :
Is there a place in Malawi that can only be serviced by Malawi Savings Bank?
WEIGHED DOWN BY BAD LOANS?PLS DECLARE THE DEFAULTERS “BANKRUPT” AND FORFEIGHT THEIR PROPERTY.INFACT WHO R THESE GUYZ?IF THE BANK IS TAX PAYER’S THEN TAX PAYERS NEED TO HAVE NAMES DISCLOSED.
Aphungu anyumba yamalamulo mugwirizane chimodzi ngati a purezidenti ndi gulo akuti inu mulibe mphamvu zoletsa kuti bankiyi isagulidwe nthawi yokambilana za budgeti muzawuze poyera kuti akambilane okha ndi a finance minister popdza inuyo mulibe mphamvu musafooke ayi wonetsani mphamvu anthu tikuthandizirani musayiwale zomwe zinachita ku UPPERVOLTA pomwe prezident amafuna kusintha malamulo mmalo iyeyo ndamene anasinthidwa
Can somebody school me, we were told that these banks MSB and Inde Bank need capitalization in my simple understanding banks will still be there on their own identity, which means anyone who will pump in money will take them as going concern. How come banks are bidding for these banks since Malawi’s Banking Act does not allow one shareholder to have more than one Bank? If this happen these two banks will be sold and closed in other words these people are interested in General Ledger. The second interesting things is that FDH bid for MSB only and FMB… Read more »
Please please! may the opposition go and get an injunction. This is worse.
Stubborn DPP back in track!
Lipunga walandira ndalama ameneyu. Nyasatimes sometimes mudziwerenga ma comments athuwa nkumawapanga follow. Mr Lipunga has pocketed a lot of money on this transaction. PLEASE INVESTIGATE HIM. He pretends as if he is God fearing koma ndi MBAVA yachabechabe.
Can all MSB account holders just go close their accounts if they are not happy with the sale.
So it will simply means liquidation of all credits. And MG gets funds ti temporary run the govt. After six months or so some other entity will go. Hahahaha.
Mugulitse musagulitse moyo wanga sungasunthe . fotseki