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.

CEO for MSB Ian Bonongwe: He says MSB needs new capital

CEO for MSB Ian Bonongwe: He says MSB needs new capital

Lipunga opening bids documents for MSB sale

Lipunga opening bids documents for MSB sale

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

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62 thoughts on “Malawi Savings Bank sale to go ahead despite MP’s disapproval: FHD Bank express interest”

  1. Mbukavu says:

    Is there a place in Malawi that can only be serviced by Malawi Savings Bank?

  2. KING SOLOMONS WISDOM says:

    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.

  3. KULYOLYOPERA says:

    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

  4. kawanga says:

    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 bid for Inde bank, are we serious? Are these people not meeting under the ground. I question the integrity of Lipunga and Finance Minister Gondwe. Paja Lipunga amapanga rent kwa Anadkat kkkkkk zilikooooo

  5. Kanyimbi says:

    Please please! may the opposition go and get an injunction. This is worse.

  6. Mwama Du says:

    Stubborn DPP back in track!

  7. Mulibwanji? says:

    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.

  8. sikusinja says:

    Can all MSB account holders just go close their accounts if they are not happy with the sale.

  9. Bob says:

    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.

  10. Concerned citizen says:

    Mugulitse musagulitse moyo wanga sungasunthe . fotseki

  11. Kulibe kantu says:

    Dont worry guys. We will get back our back thru nationalisation!

  12. Kulibe kantu says:

    Mbwiye is a DPP supporter. He does not know anything.

  13. Kulibe kantu says:

    Can MPs get an injunction to stop the sale. And Jimmy Lupunga must be fired!

  14. Patriot says:

    M Development Limited (MDL) of Malawi owes 55% of sharesholders of FDH
    “M” stands for …. (musova).
    Akugula bankiyi ndi……. (Musovanso).
    Ine ndukaseka account yanga mawa iya.

  15. Patriot says:

    M Development Limited (MDL) of Malawi
    “M” stands for …. (musova).
    Akugula bankiyi ndi……. (Musovanso).
    Ine ndukaseka account yanga mawa iya.

  16. atate says:

    Let the mullis pay first and thereafter sell it

  17. MBACHI says:

    WHAT ABOUT MULI? HAS HE PAID THE MONEY HE OWES THE BANK? AKA NGANYA AWA AKUKAMA YOWONDA.

  18. BigMan says:

    These MP’s are just barking, barking, barking and barking some more….for nothing! Why should government subsidize this bank instead of selling some shares from the other players in the financial sector who are willing to spend their money on it and make it flourish?

  19. isaac says:

    Gv Msb De Money Or Allow It To Be Sold.

  20. Nkhombokombo says:

    Sale!, Sale!, going!, going!, going! Gone, what next? The poor man still remains poor. Let all clients who have their moneys there to make a decision whether to remain there or move out. They must not take advantadge of our lack of technical know how. Making profit on poor souls, shame on you! Find a way of saving this Bank otherwise the noise from this issue will be far reaching.

  21. Pumbwa says:

    Muli osamulola kugula bank ina iliyonse abweze kaye K3bn ya MSB

  22. Israel Difense Force says:

    When executive arrogance reaches the climax like that, just know that the death of the head of state is at hand. The only thing that I can say here is that it is well with my soul

  23. mgawadere says:

    Zausiru izi alomwe zawavuta basi iu pheee zivuta osati sewero

  24. sikusinja says:

    Why is a bank with so many debts by Lhomwes have only one bid by a Lhomwe, and yet Indebank has Five bidders.

  25. Wakwithu says:

    Mbwiye’s comments are misplaced and the guy is an educated fool. MSB is 100% owned by govt and therefore taxpayers money. You know the issue is this DPP administration wants to bail out Mulli who owes MSB billions of kwacha money used to backroll DPP. This makes the issue of national importance hence parliament invovement.

  26. George Ngwira says:

    So if the parliament has no power to stop the sale of the bank, Why did the finance minister table the bill in Patliament to pass??

  27. Gutepo Mphwinyo says:

    not until mulli and mlusu pay back our money otherwise injunction is on the way. please our dear lawyers save us from these blood sucking animals

  28. freeman says:

    i think mbwiye have a big problem,who brought the issue to the parliament and why,the mps are not as you think ,they are capable enough,not all went there to fight innocent people ,but they represent people even to avoid such dubious so called sale ,guess who is buying then you will know the truth.by the way do u know who messed up the bank,whose regime.its really for bank like that one to sink.bank si luza business achimwene ,i smell a rat

  29. mulumyana says:

    No sale of the bank unless borrowers returns the money .they want rub off debit which they have

  30. Mbwiye says:

    Our stupid parliament does not know its role that it is there to make laws period. Today they want to be executive and tomorrow they will want to be judiciary. Leave executive powers to executive and judiciary powers to judiciary. This is the result of having mps who are not conversant with what they are supposed to do. this is what happens when church elders leave the pulpit and become mps. Do you think Baba Jzu Tembo would allow such motion to go through the parliament. He learned a lot of lessons on sec 65.
    What Min of Finance says is that parliament has no powers to stop the sale of MSB, possibly the only institution with powers to stop the sale is the court (the judiciary) and not the parliament. If you still want to stop the sale do not convene the parliament, but seek legal advice. By the way, did parliament provide any alternative to the problem? Did they factor in the budget they were discussing the 23.7 billion kwacha required by MSB to meet RBM requirements? If not, did mps expect MSB to bail itself from the problem or they want the bank to be closed by June 2015 as stated? You mps just make noise in parliament without reasoning. I personally do not support the sale but do not support the way parliament took. They just advertised their ignorance in parliament and hope the right procedure will be followed to stop the sale before it is too late. Threatening to impeach the president will not assist matters, by the way where are you going to get two third majority to impeach the president? Mps please give MSB 23.7 billion kwacha or else let the sale go on period. The next should be ADMARC . Bail it from its problems or liquidate it, period. DO not just make unnecessary noise in parliament and again most of you in parliament are non finance managers, so do not try to look smart on issues of finance. Please seek advice from the right people before you make noise.

    1. sikusinja says:

      Mbwiye, what MPs said MSB was formed thru an act of Parliament therefore it also needs a motion in Parliament to go ahead with it. This is why Malawi govt is paying pple lots of money because the president fires people who laws state only the board can remove them. That’s why Macra and others are paying 2 CEO’s. The shareholders of MSB is not ministry of finance but taxpayers thru their MP’s.

  31. Peter somanje says:

    Am sorry if u’re a jounalist ‘coz never heard of a bank fhd wat i know is fdh and consult ur books before u write.

  32. IF THE MOVE WILL BE THERE, PLEASE THINK OF THE RURAL AREAS TO HAVE THE BANKS TOO,THE BANKS MUST BE IN THE RURAL AREAS TO ASSIST PEOPLE WHO HAVE MK6,000.00 UP TO MK40,000.00 AS PART OF THEIR SALARIES AND THE LIKE. ALSO LOOK THE ISLANDS OF LIKOMA AND CHIZUMULU TREASURE ISLAND TO HAVE THE BANKS.
    IN THE PAST MALAWI POST OFFICE SAVINGS BANK WAS OPERATING EVEN IN THE RURAL AREAS/ISLANDS.

    GVT/DPP PLEASE MAKE IT, ASSIST THE RURAL PEOPLE.

  33. Chidzukulu cha Akwitusya says:

    Kkkk this govt nothing good in it ….it has deribaletly not been paying teachers for 6 to 10 months … The old minister is trying to get money to pay himself..where are those NGOs that checks the directions of the govt? Where are the religious leaders who always check withe good governance ? They are all silence why coz akudya nawo bwino..kkkkkkkkkk

  34. Cocoon says:

    The same Lipunga sold Chitakale Tea Estate to Mulli but Mulli never paid money for it please check? now the same Lipunga is allowed to give away MSB which was doing well before DPP came into power, please GOD have mercy on the poor Malawians. Why have you allowed these thugs again to so called rule this country, they have not learned anything from what happened 3 years ago. Really? the Malawi President owns the country? Not Malawians? Hear our cry again please Lord??

  35. Phillimon HARAWA says:

    KODI BOMA LIKUDZIWA KUTI SUKULU YAULERE KULIBE, ANA AKULIPIRA NDALAMA ZAMBIRI KU SUKULU. CHITANIPO KANTHU KUTI ANA ATHANDIZIKE.

  36. mona says:

    First we should look into the issue why we need new capital?
    Msb is the only bank in malawi performing bardly other banks are making huge profits why?
    The reason is simple, the bank is abused by dpp politicians who gets billions of loans and never repay.
    The problem with Malawians is that we look at the result of something and not the cause of something
    Let’s look at the causes of its downfall before deciding on the next course of action the bank is heavily in default Mulli only owes msb 3. 2 billion how about other politicians.
    Yet the bank will be sold below 1 billion, msb is a bank for malawians and not dpp otherwise the country will remain poor
    Msb main objective is to serve the poor masses and not our stupid dpp politicians
    Therefore if anything the bank should be sold through stock exchange market and not secretly the way it is as if you are selling ndata farm
    Let malawians buy the bank i hate dpp so much, they are all dirty politicians
    Kamuzu had a vision he wanted msb to serve poor people
    Hey My GOD will punish you, you will never no peace in your lifetime

  37. DAUD says:

    MP alibe mphamvu mwati yoletsa kugulitsa MSB. kodi mwayiwala mphamvu kwa anthu mukuopa chiyani? maumboni kapena? chuma cha bank yi chili bwino chifukwa chopezeka paliponse .munkanena anzanu kuti agulitsiranji ndege. nanga inu ?

  38. Emmatuwa says:

    boma lakuba iri sindinaliwone chifukwa chiani mukugulitsa bankyi amvereni member of parliament musagulitse bankyi.

  39. Bololo Wachitumbuka says:

    Ngat inagulitsidwa MTL, IYINSO gulitsani, bank imeneyi anthu ake salimbikira ntchito komanso ndi amwano, ndi bank yokhayo imene sipanga bankdraft mmalawi muno

  40. ganimunthu says:

    Try it Goodal you will face hell in Parliament. You are wasting your time and this issue will negatively affect you. You will face he’ll in Parliament. I repeat you will face hell. I repeat you will face hell

  41. tuvi says:

    Exucutive arrogance has started again, if Parliament has no powers , why did you allow it to discuss the issue in parliament when u had already made the decision? what are trying the run away from this MSB? kalipo kalipo

  42. Ngongoliwa says:

    THIS WILL BRING PROBLEMS IN THE NATIONAL ASSEMBLY BWANA. BUDGET OR MSB, MSB NO. 1!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  43. dafuq??? says:

    lol… half baked graduates running mickey mouse financial instututions. ine ndimasunga money yanga mu mattress

    1. gule says:

      Tilipo awiri man

  44. Kadakwiza says:

    Malawi will stay poorest in the world. Ndinamva chisoni pamene ndidazawerenga nkhani yina mu Mail and Guardian pamene wina ankathirira ndemanga pa nkhani yokhuza asilikali a United Nation amene akukhazikitsa chitetezo ku DRC. Mukuluyo adati ndibwino asirikaliwo achoke ku Congo ndipo ndalama zimene akugwiritsa ntchito kumeneko ndibwino ati apatse dziko lathu la Malawi. Chifukwa ndilosauka zedi. Pano boma ndiilo likugulitsa bank. Ndipo ndalama zakezo sizaoneka kumene zinga pite. Koma a Malawi ali gone akungoyang’anira. Atsogoleri akuononga dziko a Malawi ali gone. Atsogoleri akamaba a Malawi ali gone. Zomvetsa chisoni kwambiri. Boma sisagulitse bank yimeyi chonde. A Malawi musalole. Anthuwa ndiakuba akufuna kuti bank yimeneyi yidzakhale mu manja a banja la china Muthalika. Musayiwale kuti Bingu ankafuna kuti akhale ndi bank yake. A Malawi chonde musalole bank yimeneyi yigulitsidwe chonde a Malawi.

  45. freedom says:

    This is unacceptable in Malawi,you better give the same bank capital investment from the outside banks in the likes of opportunity bank.this might make more punishment from the donors.

  46. Dick says:

    IS OUR PARLIAMENT THIS WEAK?

  47. zabweka says:

    Asiyeni sakuziwa kuti oneday azayakha milandu

  48. Achimidzimidzi says:

    Court Injunction!!

    Did this bank, MSB go through parliament on its inception or Minister of Finance organized a dinner and dance fund raising.

    So there is no law, governing this bank for the rural people. Anyway, am going to boycott banks now, they are not reliable. ‘Bank mmanja’ will do.

    Can someone explain to me why parliament cannot stop the sale? Was it registered as a private Limited company.? What’s the reason?

    Ndichotseni umbuli ine!

  49. DPP what are you hiding everbody knows that you were using MSB to steal money during Bingu time

  50. DPP what are you hiding everbody knows that you were using MSB to steal money

  51. Achi says:

    Goodal, u know very well that the source of the so called bad debt is ur DPP govt. Why cant u just pay back? Rather than kill our nation using lame execuses

  52. zoba says:

    Then if parliament has no power to stop the purchase the MSB, What is the sense of bringing to parliament in the first place. Is this not arrogance?

  53. Jelbin mk says:

    Anyway then why do we have parliament if it can’t block such a stupid decision

  54. yuona says:

    Paja mumayamba kugontha ndi mkhutu.

  55. Mmodziyekha says:

    Mukufuna kutinyenga

  56. Jelbin mk says:

    Very stupid government with executive arrogance this in other countries becomes the start of civil wars because if the state bulldozes anything which is a public utility and is done in the interest of few politicians then taking up arms against such a stupid government becomes not a sin because is going to work in the interest of the public check Nigeria with Bokoharam

  57. Chikopa says:

    Can you tell us why imigration is not printing passport , nanga oyendafe book lathu latha mufuna mutiphe ndi nja?

  58. Mulli bank ungayikwanise

  59. tonse says:

    Arrogance of DPP. Tiowne wamphamvu ndani – lawmaker kapena executioner.

  60. Member says:

    Mbava!!!

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