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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50 thoughts on “MCP to take govt to task over Malawi Savings Bank ‘toxic’ assets: Kapito says govt ‘stealing from poor’”

  1. vin mongu says:

    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 take Govt to court over the case. Secondly, you told Govt to set up an independent assessor to look into the assets of MSB, unless there were no audited accounts of the bank but the there are balance sheet should show them clearly. MCP push these guys you are doing a good job!! Rhino awonetse that you have advised budget and finance committee for over 10 years before.

  2. YOHANE MBATIZI says:

    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 ?

  3. 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.

  4. pamsundu says:

    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

  5. pamsundu says:

    Zazii!

  6. Ntonjani says:

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

  7. dziko says:

    What goes around comes around.somebody some day adzayankha

  8. Nebo says:

    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.

  9. DOBO says:

    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.

  10. No tribalist lomwe. says:

    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.

  11. Alungwana says:

    MEC, 36.4% voters, the Blantyre high court, Friday Jumbe, Allan Ngumuya and the weeping MEC chair are to blame for forcing to have the DPP and APM as the president. These are the consequencies.

  12. I think,it’s hard time for malawians to wake up protest heavily against the government,kuba kwachuluka madonors aja anadabwa zowona,kuyambira 1994 ndala akhalala akutipatsa ndi zingati,Atari awerengetse zitukuko,zikukwanira ndi makobidi operekedwawo.self enriching readers mmmxxxx.

  13. nobel says:

    I can convincingly say that the proceeds will be channeled to the rumored jet purchase. This is DPP don’t forget. But how long will they keep on this impunity? These Mhlomwes have really grown wings,let’s pluck off these wings before it is too late

  14. shaft ya mbava says:

    A varibo hama akukwerabe koma ati boma labwezera ngongole…hehehe A mulli ndiye akuti malawiyu anamugula …..chonde amalawi tiyeni tiyatse katundu yense wa mulli mogwilizana

  15. shaft ya mbava says:

    Muli akuti anayigula malawiyi …..tapangana amalawi tonse kuti tilanda katundu tokha amuliwo akonzeke

  16. Victor Jumbo says:

    Besides Malawi being poorest Country in the world it has the most corrupted Leaders in the world. It seems to me that every leader who comes in have different agendas from that of pre-election promises. Some of the things they promise is to uphold the rule of law, serve and protect the people of Malawi. But in this MSB saga it appears the president is serving his friends or his cronies so to say. By paying back the loans with tax payers money on behalf of the 13 private individual borrowers shows that the person who has ordered this to happen not only benefited from the loans in the first place but organised and masterminded them. This person can not be any other than the president who is in charge of the country. He is the law professor who thinks can bully everyone by taking advantage of his knowledge of the country laws. In Malawi the president has got most of the powers if not all. What he says people do without asking questions of any kind. The bank manager may have been ordered to grant loans to his 13 cronies and for fear of losing his job he just followed the man in charges orders. This is a long standing problem Malawians will continue to suffer from. Solution, curb some of the presidents power’s . He should have limited powers with which he can use to protect the people and not punish or take advantage of them. It also seems to me that even the ministers , Mps , The police and parastatles chief executives work only to impress the president of the day rather than work for the people and good of country. I strongly believe that the police and the army should be independent of the president. There should be an independent body regulating and overseeing the polices work. In short I for one would recommend Federal government System which I believe would check imbalances and guarantee equal distribution of worth. I am against the selling of MSB and want to know what the government will do to crawl back tax payer’s money from these 13 unscrupulous private individuals. What kind of loan repayment agreements were put in place before securing the massive loans they took. How much worthy are these 13 individual private loan borrowers are at the present? Get back every single penny they took from the bank including their assets.

  17. mtunduwatha says:

    people!!!! pena pale kumangoonerela zinthu zikupotoka sibwino….. they stole the votes and entered the stage through courts, thus a known fact….they burnt MEC warehouse after The court ruled for recount of Lilongwe constuency votes…..now they continue to run the Government in a Mafia like style. can we just st phwiii…. Khumbo Kachale on his FB page has talked……Billy Mayaya has talked….Kapito has talked…. we are talking as well….let us all unite and pressurize this minority government out by what ever mean….I rest my case

  18. Kika Kanawe says:

    What kind of government do we have?We have a corrupt,sleeping and senseless government that is unable to differenciate its right hand from left.
    We leaders who are busy milking a thin cow,leaders who have no direction of leading a country.
    No wonderMalawi is the poorest country in the world.
    No wonder corruption is rampant,prostitution is the order of the day and poverty is Malawi what knows.
    I expect the worst to come.

  19. RealMalawi says:

    Those involved in this saga are benefiting twice; loans forgiven and an asset sold for song to friends. That can only happen in MALAWiWI, where he majority have no voice.

  20. Chidzukulu cha Akwitusya says:

    Kkkkkkk this must be real serious parpet govt someone is behind this govt now its giving sence to is being said on the social media groups…….this is what people choose the Baraba himself….Malawi idakana munthu wa Mulungu kkkkkkk it happened before its happening today ….

    1. Zofuna amalawi, ukundikuyamba mulira simunati anthuwa ndi mbava, ine ndinavotera opposition.

  21. makhere says:

    I strongly agree with Think tank.. its better for the british to rule Malawi again.its a failed nation. That’swhy people are all over looking for grnner pastures. Kumangokhalira ndale basi.. no development. Muma border, no toilets.

  22. Chinthumwananga says:

    I have a feeling that this is another rogue administration.

    This is unbelievable.

  23. ujeni says:

    Mavota vota munavotela nazo ma mafia. What use my taxed money to bailout a satanic worshipper, Reverse this decision forthwith

  24. Zanga Phee! says:

    I wonder why MCP is always quite on sensitive issues like this,If MCP is really a parties people should handle these issues amicably.There is a tricky there that sounds Government officials stealing in directly.Opposition is not just for fun Make noise guys don’t sleep.See my name.

  25. kazeze says:

    We don’t have an opposition in parliament, otherwise the next sitting would be fireworks the EFFP STYLE. A CHAKWERA you are too casual to demand what must be given back to the people. You need to include legal action in your demanding from Govt what is for the people. To hell with this thieving Govt, please opposition help us and we will be with you. Take all the comments people have made on the MSB issue and make hey of it, it is your duty and responsibility. Nazonso zi ma Independent MPs are useless, sitting PHWI in Parliament, zitsilu za wanthu.

  26. Patrick Muthema says:

    Was it not the same parliament that asked government not sell off MSB but bail it out? What shape did parliamentarians want the bail out to take?

  27. Thanduxolo says:

    Dziko lathu ndi lomvetsa chisoni kwambiri!!!

  28. Think Tank says:

    Blacks have failed. Let the British comeback on hiring basis to run our finances in all sectors. The way we doing things is so mind-bogging one can easily go mad.

  29. Bob says:

    Rotten technocrats, stupid government, RBM, MSB and everything is shit.

  30. mesho says:

    I think the IMF, World Bank & all donors have eyes that see, ears that hear. With this type of behaviour the country does not deserve any aid or budgetary support. This is the problem of voting gays in government.

  31. Atcheya says:

    This is daylight robbery. These are cases where civil society should be demonstrating about. Mulli still has a lot of money: after all was he not this other day bidding to buy a local bank (indebank or something)? You can only set off a loan when a person doesnt have capacity to pay and I dont think Mulli is. He has not even been declared bankrupt and the assets he owns have a much higher value than this loan. Perhaps, the loan he got was shared with DPP bedfellows or was used to finance the party. We need answers!!!

  32. Jelbin mk says:

    I usually don’t go insulting in the streets but allow me to do so for Peter Muntharika,Goodall Gondwe,MSB CEO and the reserve bank governor(Tchuka) that fuck you!!!!!!!! You stupid idiots you have sold us to few individuals who took loans on behalf of DPP and how can the sale realisation be 4.6 billion while individuals owed the same bank 6 billion???????? Do think we are foolish enough to accept this cabbage?

  33. Stupidity at its best.

  34. kamwera says:

    zifukwa za demo zakwana basi

  35. Mjonanje says:

    MCP opposition ndi mbola zedi. How can a strong oppostion party like chipani cha Tambala Mfwipa kumangoonelela zinthu zowawiwitsa moyo ngati izi kumachitika pamaso pa anthu osauka ngati ife? Abusa mmalo moyankhula motsutsa nawo akutenga nawo mbali. Read your bible Yona 1. 1-6 .Yona mwana Amittai bambo kulalika motsutsana nawo, si izi za a Chakwerazi hehehede pa Malawi

  36. Tingopenya says:

    look @ this gvt, do u know that the money u are abusing comes from disabled, cronically iil, orphans etc who pay taxes through skyrockted prices for day to day necesities? should we pay the defaulted loans for well to do people who have been robing us, who happens to be the benneficiaries of cashgate? and also ur relatives? after that we shld purchase a jet for u? ok what u need to know is that God sometimes punishes dubious pple like u here on earth. Do u need to be reminded what happened the past 2 yrs? no u r old enough.

  37. nkunthamasese says:

    The 5bn is Bingu’s loans thru mulli. ngomgole ya bingu tibweze ife GOD forbid. abweze Carister, peter ndi tapiwa .

  38. Achikachinja says:

    izi nde zautsiru

  39. chinakanaka says:

    This is where the opposition should take a cue from JZU’s stance of not passing the budget until the government conforms with Parliament. Mulli is treated like a cabinet minister, he receives every entitlement accorded to a minister such as security detail and a government official vehicle!

  40. giftu says:

    A Kuntsaira munalowa DPP kuti akukhukulukireni ngongole? Zoona?

  41. Mswazi says:

    Does it mean there was no security involved which could have been liquidated to recover the loan? Govt paying on behalf of individuals who are still running their businesses is a big joke, they need to pay back! U cannot recover a loan using my tax money which can buy drugs in hospitals. Pankholi panu mufe ndithu mxieeew!

  42. kaphirintiwa says:

    are you really there god? should we stop praying to you? will the poor downtrodden masses ever find happiness or will they always be enslaved by the rich?

    please show us a sign, a big sign, like the one you showed before, so that men can finally understand that you alone are mighty……

  43. Dr Mrs Ben Phiri Mutharika says:

    This government is continuing where Bingi had stopped.. A Malawi kusamva , how could you put mediocre and egocentric individuals in power. These are the people who are with self aggrandizement at heart and not 16 million Malawians at heart. What is so special with Mulli? GOD HAVE MERCY ON MALAWI. MSB sale is perfect thievery and thuggery. When in Malawi have a single Bank posted losses? This transaction is on premise to save Mulli and share national cake amongst lhomwes only. This is first class uchitsiru and this DPP Government is very insensitive to aspirations of Malawians. Kodi Alhomwe vuto lanu ndi Chani? Mudzakanthidwa pansi pompano. Mwayamba udyo

  44. honourable says:

    Much as am M C P supporter , i suspect that some of our own MPs are eating from government, u are not taking the government into task, take an example from south Africa the EFF is a small grouping but can put the ANC on the corner. These are Bingu loans he took thru mulli and Mwanamveka was not supposed to be a minister, that guy is too corrupt. This whole DPP issue is in government only for their business interest, Malawi will never develop with this type of minds. Goodal with respect u are a genius but these guys are playing u games. Anyway wish u well if u think of poor Malawians one day

  45. freedom says:

    This is not acceptable in the strongest term once again what the media has written,if it happens to be true then it’s another cashgate in the making.we totally differ and we immediately ask the 13 defaulters to pay back what they bore from Malawi Saving Bank without strings attached.people love your country collectively.minister of finance please don’t hesitate to explain to the public in simple terms what it means,when you use taxes without participation of parliament.

  46. Chief Cadet says:

    This is pure madness,we have to close all businesses of Mulli Brothers if this is true,he is a thief, a Kapito & NGOs konzani tsiku tikatseke basi or abweze tifera zathu,sitilora!

  47. Tengupenya says:

    The legislators’ approach should secure desired results. It is not about just talking about it, but strategic engagement of the government to take due corrective measures, which are
    1. liquidation of collateral or loan securities which the debtors exchanged or offered MSB
    2. For any remaining balances, taking bankruptcy proceedings against the debtors and fiduciary sanctions against the board and management of the MSB, and of the debtor companies.
    3. Taking punitive and exemplary Sanctions against those who abused official position, those who neglected fiduciary duties to MSB Shareholders, those who engaged in or attempted deceit of the taxpayers or the public in the connected transactions leading to the need for government resources to be used to save MSB ; those who failed to apply or use regulatory powers against the board and the management of MSB
    4. Legislate or strengthen legislation to avoid a repeat of such negligence, abuse as have occurred at MSB and Reserve Bank of Malawi.

    In service to the nation, it is not a battle of words on the floor of parliament, but a responsible engagement of the government to achieve results desired by the nation and equitable to the national stakeholders. There are no political points or mileage that are as worth as getting results for the people of Malawi. The government can only fall at the next elections. So those in opposition should aim at getting the best for the public in parliament and articulating those results to the public outside of parliament.

  48. Animal Farm says:

    So all what MCP can afford to say is that they will continue to raise the matter in Parliament? Pathetic opposition. This is where one misses the opposition led by JZU

  49. Pata phiri says:

    What the hell if this is true that mulli is forgiven his billions by the government with the knowledge of peter impeachment should begin without arguing this matter even for a second

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