Mpinganjira denies FDH takeover of Malawi Savings Bank: Activists calls for sale halt

FDH Financial Holdings Limited chief executive officer Thom Mpinganjira has fended off talk that the company has completed the process of buying wholly State-owned Malawi Savings Bank (MSB).

Thom Mpinganjira:  FDH takeover of Malawi Savings Bank not yet but will eventually happen

Thom Mpinganjira: FDH takeover of Malawi Savings Bank not yet but will eventually happen

Mpinganjira said on Thursday that the process is continuing.

He rejected reports which went viral on news websites and social media on Wednesday that government secretly proceeded to sale the bank to the only bidder FDH, a move which parliamentarians described as an “epic swindle.”

“That is not true,” said Mpinganjira on Capital FM Radio.

“I am the one who is going to sign the documents, so I have not signed yet,” he added.

Mpinganjira, however, expressed optimism FDH will take over MSB in not too distant future.

FDH Bank has offered to buy MSB for K4.9 billion (US$10.9 million), which is 75 percent of the government’s shares.

Public outcry and parliament forced President Peter Mutharika to suspend the sale of MSB which had reportedly been weighed down by bad loans.

Human rights defender and social commentator Billy Mayaya and Forum for National Development Fyson Chodzi on Wednesday engaged members of the media, asking government not to sale MSB.

Mayaya said it is “unfair to Malawians” to go ahead in selling the bank while the consultations are still going on.

“We don’t see the reason of selling the bank when it is making profits,”  he said.

Reports indicate MSB posted a pre-tax profit of K2.5 billion (US$6 million) between January and May 2015.

MSB has posted a 221 percent increase compared to the same period last year when profit before tax was K773 million (US$2 million).

The bank’s unaudited management accounts ending May 31 2015, show that MSB has made a consolidated pre-tax profit of K2.5 billion against a budget of K1.1 billion (US$2.4 million), beating the target by 126 percent, The Nation reported on Wednesday July 1, 2015

The MSB management accounts report also show that MSB Forex Bureau, a wholly owned subsidiary of the bank, made a pre-tax profit of K186.4 million (US$414 222) against a budgeted pre-tax profit of K228.4 million (US$507 556).

Citing a bank source, the paper said in the past five years the bank only made a loss of K1.9 billion in 2014.

MSB has 74 points of representation across the country with a workforce of about 600.–Additional reporting by Green Muheya. Nyasa Times

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14 thoughts on “Mpinganjira denies FDH takeover of Malawi Savings Bank: Activists calls for sale halt”

  1. haaaaaaaaaa koma pido mpaka kugulitsa bank zafika povuta

  2. ndagoma ndidziko says:

    Lets not blame the buyer. Lets blame govt for selling. Once an item is up for sale anyone who wants it can buy. Msb is going the same way David Whitehead went. Mavuto pa Malawi

  3. zabooka says:

    Greedy shall never be blessed by God. God resists the proud but gives grace to the humble

  4. Obvious Phiri says:

    Mpinganjira was one of the two Malawian business people that I used to respect and admire.

    I’m afraid I’ve had to strike him off my non-black book because of the way he’s conducted himself during this planned robbery. As others have already pointed out, he should’ve withdrawn his offer the minute he realised the potential acquisition has become controversial. He should’ve run.

    Yes, it would be nice for him to get even richer. But surely a few more billions can’t be worth sullying his good name and the brand that FDH has become.

  5. ikamuna yamemena says:

    I so wish I were Thom mlomwe mpinganiira that people respect my prowess in business and I may sacrifice that to the bad image when I proceed buying the controversially transacted bank. If I was him I could stop my good intention and see what may become of the bank. I could give Malawians the benefit of the doubt and prove them wrong if the bank fails to make profits as it is portrayed by government. People are aware that it was Mulli and some unfaithful people like varibo and the other guys that want to make what was otherwise governments’ good venture. Mr Mpinganiira do not cling to something that is making people stage demos and the like. Leave it and withdraw you will save yourself from bad image that is slowly coming to be yours which I know it isn’t yours. Sagula nkhuku yamilandu bambo

  6. Mapwiya Mulupale says:

    KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK

  7. Mbewa ndi nchira says:

    If really MSB was making losses, the solution was not sale it or buy it Mr. Mpinganjira.

    The solution was to stop politicians from abusing it or to have development conscious government which would encourage the rural masses to be saving and using bank.

    Now how does government encourage people to save, while is no bank?

  8. Achimidzimidzi says:

    You don’t need to sign any document, sir. There is no point to keep records which were signed by dishonest people becuase the information therein is false. A bank which is making profits cannot be sold just like that.

    Some of us when we ask for a simple concession from government, we are told alot of excuses and explanations just becuase we from another region. Yet we are Malawians and trying to invest in Malawi while others get it easily.

    Just tell us, when does your bank plan to withdraw from rural areas? The sale was already concluded in the spacious offices at Capital Hill.

    Make sure you close all MSB branches through out Central Region, we are being serviced by OBM. OBM is much much better than MSB.

  9. Patriot says:

    Dziko lili mmanja mwa AGALU

  10. Truth Recognizes Truth says:

    Ma MP ndi Billy are not competent people on business matters. Sell the bank!!!! Don’t play tricks by posting fictitious profits. Once sold, the Bank will not be at the mercy of politicians and henchmen, and it shall post more profits. we shall also stop these unnecessary mikangano. Or MCP, are you planning to eat from the same bank in the unlikely scenario of your coming back to power in 2050?

  11. Mnunkhaludzu says:

    This article just confirms that the process to sale the bank was not halted. To summarize, the story alleges that the process of signing the deal is not yet done but will not be in a distance future – meaning its just near closing the deal! Mayaya and Chodzi’s barking holds a higher % of truth. The president’s reversal of tune was just to divert the attention of the people while underground activities for the deal continue to proceed.

  12. mtumbuka selfish dog says:

    Msyaya shut your proboscis! We did not elect you to speak for us! We Malawians are happy the bank will be in the hands of Malawians. Nsanje bwanji?

  13. Malawiana says:

    I wish Mpinganjira could realise that this bad publicity is not good for his otherwise good business acumen. His Bank will always be viewed negatively should he proceed to conclude this deal without addressing the concerns of the majority. I personally feel FDH would make a good buyer for MSB but we should avoid shortcuts that would put at risk the good image of FDH as a Bank. It should also be made clear as to whether MSB will also be closing for business on Saturdays as does FDH as this may not be good for the rural communities who only have one bank in the vicinity.

  14. Nyau Isthobwa says:

    Akuwuza kuti ukane koma dziwa kuti sudyera uferapo

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