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).
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
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