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.

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musolin
Guest

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

Peter Mathanyula Wakuba
Guest

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

mabvuto
Guest

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.

A MPINGO
Guest

A NGWAZI KAMUZU AKANATI AZIGULITSA AKATUNDU CHOTERE MONGA MUCHITILAMU / MATCHONANU MUKANASOWA POYAMBIRA NDITHU CHIFUKWA ZIKUWONETSA KUTI MUNANGOBWERA NJEEEE

MULUFUNA KUNGOKOLORA POMWE SIMUNALIME NDITHU !!

MULUNGU AKUKHULULUKIRENI POGANIZIRA ZA WANA WATHU NDI MTUNDU WA A MALAWI

Idiottm
Guest

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

A MPINGO
Guest

PITALA PITALA PITALA IWEE ???

chakwanuleka
Guest

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.

Truth
Guest

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.

tuvitwana
Guest

KODI MALAWI ARMY, WHY CAN’T U V COUP THIS STUPID GOVT. WE WOULD N BETTER OFF UNDER THE ARMY THAN THIZ FOOLS. MALAWIANS BUKINA FASO DID IT, WHY CAN’T WE JOIN HANDS N REMOVE THIS GOVT. NDIZOTHEKA, APM NDI WAMATHA N IS SICK LET’S REMOVE HIM

mgawadere
Guest

Bank za alomwe izi tinakuuza kale ukayenda ndimlomwe wayenda wekha siizi

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