Malawi Savings Bank staff bays blood for CEO, demand halt of bank sale

Malawi Savings Bank (MSB) staffers have threatened to resort to industrial action by Monday next week should their Chief Executive Officer (CEO), Ian Bonongwe, not step down.

CEO for MSB Ian Bonongwe: Asked to resign

CEO for MSB Ian Bonongwe: Asked to resign

The employees of the struggling government wholly owned bank, mostly junior staff members, have in writing accused Bonongwe of “incompetence.”

According to the employees, Bonongwe is the cause for the bank’s poor performance, lack of negotiation skills to recover to recover loans, nepotism and top management extravagant expenditures.

“We strongly demand that you, sir, the CEO of MSB, Ian C. Bonongwe, should take leave of office (MSB) by 12 noon Monday 16/03/15 failing which we shall resort to industrial action which is in line with the labour laws,” reads the letter in part.

The employees further described Bonongwe as a failure for succumbing to government’s intention of selling the bank.

Despite parliament’s disapproval of selling the bank, government has gone ahead with the move. First Discount House (FDH) is the sole institution that has expressed interest in buying MSB.

Peter Dimba, of the Budget and Finance Committee of Parliament, had described government’s intention to sell the bank as an attempt to rob people.

“Government intends to sell the bank to a few individuals including FDH at a giveaway price when the bank’s assets as of November 2014 were in excess of K46 billion,” he had said.

According to Dimba, the “Central Bank was deliberately inflating the capital requirement for the bank to be Base II compliant to K23.7 billion when in fact the bank needs only K5 billion to recapitalize to optimal levels.”

Public Private Partnership Commission (PPPC) this week opened tenders to identify a strategic investor to buy a controlling stake in the bank.

And ironically, only FDH Bank Limited expressed interest to buy the stake.

Members of Parliament vehemently rejected the sale of the financial institution which is wobbling in the thick of dismal performance in both capital and liquidity requirements.

The bank, according to Reserve Bank of Malawi (RBM) records, is yearning for a minimum financial bailout of K23.7 billion by June 2015 to meet its capital and liquidity demands.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From Nyasatimes

More From the World

50 thoughts on “Malawi Savings Bank staff bays blood for CEO, demand halt of bank sale”

  1. musolin says:

    Alomwe inu mufuna kubera mtundu WA Malawi….Msb CEO had been Lomwez

  2. Some of these people have been bosses longer than I’ve been alive- and I’m in my 30s. Kodi retirement inatha ku Malawi?

  3. mabvuto says:

    Then the employees should buy shares or work on an agreement to convert their future earnings into shares so that they can buy the bank as employee owned. Simple. That’s when the truth will dawn on them that running a bank is either easy or not so easy. The proof of the pudding is in the eating.

  4. A MPINGO says:




  5. Idiottm says:

    Thom Mpinganjira, deal with his bank robbed from Zimbabweans Idiot.

  6. A MPINGO says:


  7. chakwanuleka says:

    MSB is in problems because of DPP and Mwanamvekha is the main culprit. Bonongwe should not be blamed for anything. All the toxic loans were granted by Mwanamvekha when he was CEO and later chairman. That was the time he had a field day with his fellow DPP thieves. This country is under curse.

  8. Truth says:

    Stupid decisions by employees who are afraid of new ownership as he will make them work. Most of the senior managers are never in the office but running around on personel business. Let Mpinganjira buy this useless bank so that he can revive it.

  9. tuvitwana says:


  10. mgawadere says:

    Bank za alomwe izi tinakuuza kale ukayenda ndimlomwe wayenda wekha siizi

  11. Tsetsefly says:

    the smart thieves aka DPP are back in town. Expect another 92 billion or more to slip off the gvt coffers by the end of first tenure. Now they are experts in police cell literature. they have completely run out of ideas and want to plunder gvt money. foolish idiots. go to hell if u don’t have anything to do in life.

  12. Josey says:

    Identify the cause that makes MSB not performing well, critically analyse them and determine alternative solutions before selling it. Selling should be the very last resort.

    1. Twea says:

      1. Bonongwe is incompetent therefore must go by monday

  13. Wakwithu says:

    Midnight 6 is sport on because it is apparently evident that nobody cares about what CEOs in public entities do as long as they help LOMWES like Muli & Lomwes to get away with taxpayers money through loans. Imagine CEO for MSB writing off Mulli’s loan in billions and goes round to recommend MSB sale to the same Mulli does that make sense . Revolution is what it will take to stop this impunity happening at Goodall watch.

  14. OGO!! says:

    Bingu used MSB to rob Malawians…as well as FDH. Goodall reinstated FDH licence without proper consultation and they are going ahead with sale of a peoples Bank even after the peoples representatives in parliament rejected the sale. Should we say that we have peoples needs at heart apa? No its selfishness and self gratification.

    Is Bonongwe more powerful than the Parliament?

  15. isupport the sell of MSB,let it go so that our taxes are used for other purposes.this bank has alot of loopholes where the politicians were syphoning the banks money.but it is unfortunate that goverment want to sell it at atake away sure there are politicians behind FDH,there is ahide game here

  16. Mkwaso says:

    I have said it before that this whole protest against the recapitalization is being propagated by disgruntled staff who have messed the bank big time and now they are fearing for their jobs. Unfortunately they are using clueless opposition mps. Mark my words

  17. Balamanthu says:

    Fellow Malawians, the employees with the help of interested parties should get a court injunction to put a stay on the sale of this Bank.This is what the accountants call asset stripping.The DPP and its clonies is trying to strip government of its vital assets

  18. Chabecheker says:

    Let employees and msb clients be given an opportunity to buy shares as part of recapitalization process to raise the required capital in basel 2 or 3 rather than selling to one or two individuals

  19. Decider says:

    Kma amwene ziliko chaka chino ife mpaka aku shire valley ADD amene tili ndi ma account ku bank imeneyi sitinalandire anzathu amabank ena analandila kale ndye tikudabwa kt tagulisidwa nd ife tomwe?

  20. Mwiza says:

    It must go. We have National Bank of Malawi, the pride of Malawi as is wholly Malawian. Opportunity Bank will continue serving the rural folks

  21. dapalapa says:

    This is a delibarate move to rob Malawians. Bonongwe and his friends knew everything in as far as RBM Basel 2 requirements are concerned. they choose not to met the standards in order to sale the bank to themselves. how can a bank make loses? banks charge almost every thing.
    it all starts with leadership these guys choose to fail and they have failed.
    Malawians lets not allow this to happen. this is day break robbery.

  22. Boko says:

    Its not FDH buying abale, its Pitala. Mulli and the other lomwes, full swing cashgate. Pliz don’t allow this to happen.

  23. BigMan says:

    This is why the bank should be sold off, look at these staff behaving like typical government civil servants, downing tools!! They are afraid that a private owner will lay a few of them off for spending their entire day sitting phwiiii instead of being productive and innovative. Sell the damn bank to FDH, let these junior staff threaten Mpinganjira with strikes.

  24. Midnight 6 says:

    Thus the reason i always say, malawi is driven by headless chickens….olo mutandiloza bola ndayankhula. Why is it that whenever a statutory institution is having a problem then the first solution must be to sell the institution? We all know that the problem with MSB is the management. Then you keep the management until things are worse as it is now. It was simple and still remain to be simple today to solve the problem. My suggestion is to fire the CEO together with the top management and put the bank under ministry of finance then inject the 5 billion required then appoint the acting management who will be monitored by the ministry. Am telling you, in 2 yrs everything will be normal. The Management must just avoid to issue loans without real securities.

    1. KanyemmawaSawadi says:

      lplead to my fellow primary trs to open new accounts with Std bank.Our frinds re getting loans there.There4let the gvt sell it.Zomwe mudafuna dont cry?—-Kanyemmawa Sawadi.

  25. inenso i was here says:

    strike strike chani apa. pompano mukhala malova nonse muwona. mumangopeleka ma loan okwiya ndi msonkho wanga eti? zanu zumenezo sindingakumveleni chisoni. shatap!

  26. mangochi kabwafu says:

    Failed state indeed. Why did the WHOLE president decide to visit prison anyway? Back to this CEO, kunja kuno kuli tometela ndevu m’phuno.

    1. Ian Bonongwe's son says:

      Kkkkkk madala angawa samamva…am glad mwaona

  27. opportunist says:

    Let him step down

  28. DRAKE says:

    Its a requirement by IMF and World Bank that Government must NOT be involved in any commercial business. That is the main reason the Bank is being sold, unserviced loans given to Politicians must be paid back to the Bank or the Collateral must be possesed by the Bank. we know Mulli brothers owe the Bank a lot of money why not posses his businesses and property until the full loan is fully recovered. The Malawi Government must also pay back the Loans it owes the Bank.

    1. MBC says:

      They told us to sell our UTM yet they have theirs operating to date. Look at UTM today, its gone. We have to be very careful with some of these requirements. They always say their suggestions are not supreme and can be ignored.

  29. yemwe uja says:

    If the intended buyer will buy the bank including its liabilities then the figure of 46b given by Dimba is misleading. Rather you should be talking about net assets.

    1. Hon Peter Dimba says:

      My Dear Compatriot, the net assets (assets minus liabilities) of this bank is in billions.Buying it at MK800 million is day light robbery! In fact that amount is less than the market value of MSB Head Office building.

  30. PHODO says:


  31. Bank User says:

    Bonongwe ndi mmodzi wz ma CEO amene Kudontoni amasangalala nawo, ochitila DDP zabwino.

  32. Chip says:

    OG Issa and Mussar AKbar you are all thieves.Ndinu akuba mawdzina lanu. Mbuzi.

  33. ELHAPO says:

    MSB’s woes have been there for time immemorial. These cannot be blamed on Mr. Bonongwe? I am sorry, but we would be missing the point! The issue at MSB is simply that the Bank does not have enough working capital. Now, whose fault is that? I would say the shareholders; firstly for not capitalizing it properly at the very beginning and later for permitting the little capital there was to be eroded on account of political patronage. Loans were granted on the basis of political affiliations as opposed to viability of projects. We know of one group of companies that was able to get a loan in excess of K3.0 billion! And the Bank is failing to collect these monies principally because of politics. And this should be blamed on Mr. Bonongwe? Oh please!

    The future of the Bank lies in it being extricated from Govt hands and given to the private sector so that the latter can recapitalize it. The future of the Malawian user of this Bank as well as the MSB employee is secure with a strong Bank; not a weak one that can collapse anytime!!!

  34. Kanyimbi says:

    Ameneyu achoke ine ndigwira mokomera fanzi yonse.asalowetse ndale pa bankyi.mumaona nthawi ya bingu, muli anangongola ndalama zankhaninkhani,nthawi ya amai ajanso che lutepo anatengako vindalama onsewa akulephera kubweza cìfukwa cholowetsa ndale pa bankyi.mukangotenga ine ndizagwira ntcìto ngati yesu mosakondera ndi mwacìndo

  35. Kanthu says:

    Iwe OG Issa ndiwe mbuzi

  36. Sindi says:

    Mpatseni Biziwick

  37. kapambwe says:

    A banch of thieves is determined to gain from the sale of this Bank. No wonder Goodall Gondwe once claimed he can’t stay without working when Bingu fired him in 2007. He knows the tricks of making easy money. Dare you sell when Parliament said NO. Actually it is Government that is supposed to fear and respect people who vote it to power not vice-versa. Fools dare. Actually I agree with one Uladi Mussa, MP when he claims parliament is going to impeach Peter Mutharika if this Bank is sold as that will be absolute breach of trust to the people of Malawi. Parliament represents all Malawians in the country and if they say no, it means all Malawians even Ben Phiri and APM have said “NO”. Who are a few baboons who claim to be government to decide against their own voters think they are? Nyooo.

  38. MCP GVT says:

    He shld indeed step down. I think he is a dpp affliate thus why he is of the move that the bank shld b sold dspite opposing disapproval..

  39. Ahlomwe Ahlomwe says:

    Instead of resolving the issue our stupid president goes to write graffiti in prison. A failed state indeed

  40. Achimidzimidzi says:

    You are right, this Bonongwe must go and should not do any business on behalf of MSB.

    If FDH buys MSB am going to close my account with FDH and I will not use MSB in any way. Airtel money come in.

    FDH are dirty, corrupt.

  41. chinkombaleza gumanyundo gowa says:

    Please please no sale to the MSB we need it as Malawians Smaller banks are surviving well why not MSB the CEO mismanaged Let someone replace him you will see it flourishing. Give it another year and collect debts or sale the surities it will survive. Kuba bwanji? Is this another form of cash gate ? Ifenso ndife anzeru tilembeni ntchito muone.

  42. freedom says:

    Wait a minute,
    you mean the bank assets are worth 46 billions kwacha’s? Allow FDH pay that to government account #1 then.yes nothing less.
    we don’t want another DWS saga.

  43. kajedza says:

    What about the staff within the bank who made a lot of money, in procurement, allowances, etc.Are they also going on strike. They also milked their bank similar to other banks that are being milked by their own staff

  44. OG Issa and Mussa Akbar says:

    Let them dare strike. Pali anthu ambiri akusowa ntchito. Ntchito ya ku bank si yovuta yosafuna kuganiza. It’s just repetitive, debit and credit. Even a dog can be trained to do it. Fire them all.

    1. special advisor says:

      This is very bad attitude to people, to problem solving and… School is supposed to develop a whole person, with intellectual resilience to focus on the problem, explore possible solutions and evaluate which solution can bring about the best bang for the buck. So this kind of commenting is simply off. If this is the attitude, no wonder we are the poorest country and most vulnerable lot in the whole universe!

Comments are closed.