MCP insists Malawi Savings Bank sale is in bad faith

The main opposition Malawi Congress Party(MCP) has raised its eye-brows over the fast-tracking of activities involving the state-owned Malawi Savings Bank (MSB).

Chiphiko: Collect debts first

Chiphiko: Collect debts first

Government is seeking financial strategic partners to finance MSB which is struggling to meet Basel II requirement and the bank needs a financial injection of K23 billion.

The Public Private Partnership Commission (PPPC) recently unveiled FDH Financial Holdings Limited, owners of FDH Bank, as the only bidder to become the strategic partner after offering K4.9 billion for the 75 percent of the bank’s shares.

MCP spokesperson Dr Jessie Kabwira told Nyasa Times that her party it is disheartened that government is busy justifying the sale of the bank despite various professional advise against it, saying the whole process smacks of “dark corner deals.”

“What we have is a  government which do not want to listen to  any advise from the other side,” said Kabwira.

Kabwira said the sale was already concluded in “dark corners” and the rest of the process is to hoodwink the public.

Another MCP lawmaker and chair of the Parliamentary Committee on Budget and Finance  Chairperson Rino Chiphiko in a dossier to Minister of Finance recently demanded that Government should collect all the MSB debts before disposing the Bank.

But recent reports indicates government has asked the Reserve Bank of Malawi (RBM) to issue K6 billion promissory notes to take the toxic loans off the MSB books.

According to a letter reference number ST/3/10 dated April 20 2015, Secretary to the Treasury Ronald Mangani instructed RBM Governor Charles Chuka to issue the promissory note to MSB to clear the toxic assets.

Mangani said the maturity of the promissory notes have been spread from 2016 to 2019 and will be maturing at K759 million every quarter.
Critics have argued that proposed K4.49 billion price offered by FDH as an “epic swindle”.

Toxi Asset- Definition

Assets that have significantly declined in value, which no one will no longer buy.

 

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21 thoughts on “MCP insists Malawi Savings Bank sale is in bad faith”

  1. ulendowu ndi watonse says:

    kodi a kapito abwana a consumer mukuti bwanji nkhani yogulitsa msb bank timadalila inutu ife chitanipo kanthu ndithu.

  2. Mmalawi weniweni says:

    MSB is a nation asset. Why are allowing these crooks to steal from us the little that z remaining. Let the gvt recapitalise the bank and sell it through stock exchange.

  3. Mwamadi says:

    Jessie, do not just talk. Can you take action? Organise a march to show your displeasure. It should not just be civil society. Political parties should also organize a march.

  4. matako says:

    What is wrong with Malawians? How long will docility and meekness continue in our society. Politicians are stealing from left and center and we sit phwii and do nothing. What will it take for us to say enough is enough. What Malawi needs is a revolution. we need a black spring to get read of these corrupt politicians.

  5. Warissolution says:

    PROMISORY NOTES PURELY THEFTY AND AGREED BY THOM, LIPUNGA AND CHUKA UNDER THE INTRUCTIONS OF ABOVE , KUBA KWEANIKWENI AGALU

  6. paul says:

    …trying to cone ppo yet again.
    DPP into cashgate MKII…collect all debts owed to the bank first then sell. But we all know who the debtors are and they are also the new proposed buyers! Ripping off taxpayers in broad daylight! why not just torch it!

  7. nachipanti says:

    This will just cripple the economy even further. Issuing promissory notes wont solve anything. Malawi should not suffer because of few people’s foolishness.

  8. chitima says:

    mbava inu a DPP mukuwonjeza tionana soon soon ! a Malawitu amadziwa ku-voter ohoo.

  9. Mwendanato says:

    Koma alomwewa ndiye atipezelera, kodi ma human rights bodieswa kodi imemenyi silomwephobia yofuna kuigubila ? Ian Bonongwe kdoi simulomwe amene anthu ena ankadandaula chaka chatha kuti wazaza alomwe okhaokha mumipando yonona ndiye pano ayiwomola bankiyi ndiyepano adyenso kachiwiri ali pompanja bonongweyi atadya zache mwanamveka ndi mulli. kodi amalawife tidagontha ndi kugotomala kotani. I TOTALLY AGREE WITH MCP VIEWS 100% LETS WAKE UP AND CHALLENGE THESE LOMWES

  10. Kandapako says:

    Zoona ngongole ya Mulli tibweze ndife a Malawi? Why should government bail out Mulli? These promisory notes will be honoured using our taxes….effectively bailing out Mulli.

  11. Charombanthu says:

    We saw this coming… The tax payer is being called upon to make good or secure a debt owed to MSB by a private or private companies??? Are these these toxic assets not fully secured? Why can’t we allow MSB to sell the assets of these companies first before resorting to these other measures?? Are they untouchable??

  12. Mad Professor says:

    Thanks nyasatimes for defining to us toxic asset. The Nation newspaper did not and they thought we all studied economics. No. the media are for general readers as well like me. Thanks Thom and company

  13. Nkhedu says:

    Vote mcp in 2019 to stop these thieving madness

  14. Nyirenda says:

    Mistakes done by Bakili Muluzi of selling government companies led to jobless of many Malawians and this Peter Munthalika is continuing this thing by selling MSB yet our relatives are being tortured killed like animals in South Africa what kind of leadership is this? weeping for my mother land Malawi who is going to subdue us from this bondage?

  15. mwika says:

    Except for the face chiphikos head resembles JZU

  16. honourable says:

    This is ur time McP to show that u are a strong opposition party. U are our last hope. Why are they trying to hide mulli. We will never develop in Malawi, that’s why we are bn killed like animals in south Africa coz our leaders don’t want to serve us in good manners

  17. Njalayamalamuchiuno says:

    The fact that the Government which lays claim to be a listening one chooses to put a deaf ear on the public objections to the sale of MSB vindicates those who question the sincerity of the transaction. We need to engage a consultant to recomment a suitable alternative for the future of the organisation( MSB).

  18. This is a day light thieving,komano chikhalidwe cha a Malawi kuteleku tingokhala chete matchona ndi gulu lawo akukokela ndikutibela

  19. peter muthanyula says:

    Even the educated Mangani is complicit in this? What a shame!

  20. nkrumah says:

    It is disaster

  21. Kenkkk says:

    Mcp, csos and malawians, this is the time to demonstrate on this important public asset which is being plundered by this stupid thieving dpp govt.

    The people are now tired of being treated like doormats by these dpp thugs whose only motive is being in power to plunder public resources for self-enrichment.

    Go on mcp, lead the way to demonstrate and the prople of this country will follow and support us on this matter.

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