MCP to take govt to task over Malawi Savings Bank ‘toxic’ assets: Kapito says govt ‘stealing from poor’

Budget session of parliament is set for stormy run and the political temperature across the country is also likely to soar with opposition Malawi Congress Party (MCP) set to take government to task over  the K6 billion promissory notes to clear  Malawi Savings Bank (MSB) toxic assets and save individuals who took loans from the state-owned bank.

Chiphiko: We will still talk about it in parliament

Chiphiko: We will still talk about it in parliament

MCP spokeswoman Dr Jessie Kabwila who is also, Salima North-West MP said they will demand answers and transparency in the way the state-owned financial institution is being sold.

“We will make every effort to corner this government on all important issues. These include the sale of Malawi Savings Bank. Let Government be transparent with the matter,” she said.

“We will  put the government on the mat,”  she added.

Dowa West Member of Parliament (MP) Alexander Kusamba-Dzonzi (Malawi Congress Party – MCP) who in the previous sitting of parliament moved a private member’s motion blocking the sale process, said he will also demand answers on the way government is handling loans from individuals before the sale.

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.

The government’s divestiture agency has since suspended the process following a court injunction.

Government asked the Reserve Bank of Malawi (RBM) to issue K6 billion promissory notes to take the toxic loans off the MSB books. The government has committed the money to repay loans that 13 private sector players took from the MSB and failed to repay.

The individuals are mostly known supporters and financiers of the ruling Democratic Progressive Party (DPP) who include to Mulli Brothers Limited (MBL)—whose managing director, Leston Mulli, is a known a close ally of former president the late Bingu wa Mutharika, the elder brother to the current leader, Peter Mutharika. Roughly 83 percent (K4.9 billion) has gone  to clear Mulli loans.

Consumers Association of Malawi (Cama) executive director John Kapito said the actions by government on MSB “ is very strange.”

He said: “ This is pure stealing from the poor and should never be allowed in a poor economy like Malawi.”

Budget and Finance Committee of Parliament chairperson Rhino Chiphiko said they will continue raising the issue in Parliament.

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vin mongu
Guest
i like MCP’s stance on the issue, but several things have to be clear here. i am of the view that maybe govt could have been doing what the budget committee of parliament said that clear the loans govt owes the bank first. so here MCP should do their homework and check if the default are owed money by the Govt which they got from MSB. If this is the thinking then Govt is write to write off their debts by the promissory note. If this is not the case, then agree also to have one of the MCP members… Read more »
YOHANE MBATIZI
Guest

Ambuye Onnani Malawi-Lowelerani pa Malawi. Justice has collapsed at the gates, and those who stop evil are becoming a prey.
Cry my beloved country.How long shall I behold this evil like Habbakuk ?The poor are paying a hefty 30% tax-probably the highest in Africa- only to be abused by the CHOSEN FEW ?
You senseless people ,can the one who created the ear not hear ?Can the one who created the eye not see ?

True malawian
Guest

I suggest govt shld bail out poor woman, youths & men who got small loans from OIBM as start up capital for their small businesses. But for these millionairs & bilionares, let them pay back pliz.

pamsundu
Guest

Stupid!Parliamentarians what stopped you from finding out the sell of ajet to a dubious bussiness paja ndi ndalama anakugayiraniko that is why last minute pipo did not vote for MCP due to secret dubious deals

pamsundu
Guest

Zazii!

Ntonjani
Guest

Ngongole imeneyo ikanakhala ya wina tikanaona ma advert ogulisa company koma poti ndi ya mnguru boma kumuperekera shame on dis govmnt

dziko
Guest

What goes around comes around.somebody some day adzayankha

Nebo
Guest

In response to comment no.24:

Yes, we, through our MPs, demanded that the govt should bail out MSB. And not sale it. Bailing out MSB and writing off Mulli’s loans, and such other loans, are not necessarily one and the same thing. The two are mutually exclusive. We want the bail out. Inject cash into MSB to keep it going. But, the debts owed to MSB must be collected. They must be collected now. Our MPs should make sure this happens.

DOBO
Guest

BOMA la Malawi kubweza ngongole ya Muli ya K4,5billion imene adatenga ku MSB.Pamenepatu sindivetsa bwino bwino.Koma ngati ndizowona aaa haa dziko lino likufunika zibonyongo basi.

No tribalist lomwe.
Guest

Malawians u’r good 4nothing. U mean u didn’t see this b4 voting this dpp cashgate again. This is ur choice, jack up p/s. Next time don’t make that blander or do’nt blame GOD 4 ur poorsight and regionalism when voting. Vote patriotism not just education.mntchona sakhala ndi patriotism.

wpDiscuz

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