Mpinganjira orders forensic audit in Malawi Savings Bank: ‘There was systematic fraud’

FDH Financial Holdings Limited Chief Executive Officer, Thom Mpinganjira has ordered a forensic audit to be conducted on the newly acquisition Malawi Savings Bank (MSB) after it registered a K3.1
billion (before tax) loss in 2014.

Mpinganjira:  There was massive fraud

Mpinganjira: There was massive fraud

Contrary to reports before FDH acquired majority shareholding of the bank that it posted a profit of K811 million as at 31 December, 2014, the bank infact made a huge loss.

Mpinganjira has, however, suspected the bank was involved in a systematic financial mismanagement and/ or fraud.

MSB as of 31 December, 2014 posted a loss (after tax) of K2.471 billion compared to K249 million profit made in the year ending 31 December, 2013.

Media reports as of 1 July, 2015 suggested that MSB made a profit before tax of K2.5 billion for the period to May 2015, justifying calls for government not to dispose of the bank.

However the bank’s audited accounts have revealed a contrary report, forcing the new majority shareholders to demand for forensic audit.

”The audited accounts show that the business is in a more serious financial and liquidity situation. A loss before tax of K3.1 billion was made for the ending 31 December, 2013. All the key business
performance indicators show that MSB was indeed heading for a catastrophic failure,” said Mpinganjira in a statement made available to Nyasa Times on Wednesday.

Mpinganjira said the forensic audit would help to bring to light any malpractices that were occured resulting in the bank to register such huge loss.

According to the financial mogul, MSB staff costs increased by 56 percent in the year 2014 despite inflation averaged at 19 percent, and in some areas quadrupling as compared to 2013.

Total staff costs were K3.9 billion in 2014 as compared to K2.5 billion in 2013. Other expenses increased from K460 million in 2013 to K740 million in 2014.

Mpinganjira has since suggested that government gave his company inaccurate accounts information, forcing it into believing that MSB was performing impressively and that was still making profits.

He then revealed that FDH needs to inject about K3.1 billion or more into MSB than was originally anticipated, in order to meet the capital requirements.

”These results are very sobering. During the period we were negotiating the purchase of 80 percent of MSB shares, FDH Financial Holdings Limited anticipated that the Basel II Recapitalization capital shortfall would be K3.2 billion. However these results show that the actual capital shortfall as at 31 December, 2014 is now at K6.3 billion, twice the original estimate, which was based on the
inaccurate accounts information presented to FDH,” lamented Mpinganjira.

”We will therefore conduct forensic audit of the bank to ensure that if any malpractices occurred they are brought to light. We will ensure that we protect the resources of this bank and vigorously pursue anyone found to have carried out any malpractices and criminal activities that were aimed at stripping the bank of its assets”.

Meanwhile, Mpinganjira has pledged to continue operating MSB as a separate bank from FDH bank as long as it is stipulated under the Financial Services Act.

Mpinganjira added: ”This period will allow us to clean up Malawi Savings Bank and turn into from a ‘bad bank’, creating value for the Malawi economy in general and all the stakeholders of Malawi Savings Bank in particular”.

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77 thoughts on “Mpinganjira orders forensic audit in Malawi Savings Bank: ‘There was systematic fraud’”

  1. tain kutala says:

    Honestly, u cant just pump in billions in a deal which you r not sure of. This forensic audit thing should have started before acquiring the bank. The Mpinganjira guy is hiding truths. He wants to fool the public. This guy is clever and i doubt if he can make that mistake.I smell something.

  2. GRM says:

    This Mpinganjira guy is crooked. He is pretending to be a buyer that buys a wrecked car only to complain that its engine is not new? STUPID! You cannot cheat Malawians

  3. KOY KOY says:


  4. Thyolo Thava says:

    MWANAMVEKA & Mulakho wa alomwe

  5. Boy says:

    This is just a publicity stunt by Mpinganjira in order to shade off criticism that he got the bank for a song. He is also trying to justify premadited action of retrenching the workers at MSB. This is done so that he will not be blamed for the massive lay offs he is about to carry out. Dr Mpinganjira be prepared to pay the workers and massive law suites.

    I don’t really understand you. What is your interest in this forensic audit? You bought the bank vistoutes, that is with its defects and strengths. Its similar to buying a car and having paid for it you undertake an investigation as to whether the car was engaged in unGodly activities such as carrying prostitutes at Bwandiro.

    We are not fools, your intentions are well known. Such an investigation was supposed to be done well in advance before signing and paying.

  6. ali isa says:

    i smell a rat in Thoms recent discovery of the rot at MSB. commercial bank losses are a cummulative process that span a number of years. what has been is the role of RBM as a regulatory authority of financial institutions in all these years?. was it effective in mitigating mismanagement despositors money at this bank?. in addition to this , the invisibility of the role of the board of directors of MSB for the past ten years is rather puzzling. in fact i am sure that it has been composed of the usual shameless suspect experts all along. where was the board audit committee when MSB financial year accounts were being cooked up year in year out for the past tens years. what were these shameless experts doing at their quarterly meetings when the bank started going down drain?. drinking coffee? shame shame.. what has the so called bank regulators at the Reserve Bank doing all these years? these so called experts should cover their faces in shame. they have let down the citizens of this country.they should all be red listed or get fired. what about the role of external auditors?. what have they been doing? certifying cooked up net profits?. i have ten financial reports covering the years since 2004 of MSB on my desk and i am shocked that i have been fed with cooked up figures with footprints markings of so called financial experts in Malawi. shame shame shame. they should be investigated for white collar crimes. as for shauli yako. i hope you are not trying to play angel. time will tell.

  7. vin mongu says:

    Mpinganjira is wondering with the obvious. I thought you were a clever guy or just now playing stupid. This is all what everybody said. Budget & Finance Committee said this already that we need audited accounts first before desposing off this thing. The beauty part for you is that you will not feel the pinch because you got a MK 20 billion plus asset bank for a whisker so what is MK 12.4 billion? But where is the status of the special purpose vehicle (SPV) to recover public money? It serves you right by the end of the forensic audit you will end up paying MK 20 billion!! Monday coaches…………

  8. Let Us Pray says:

    I have completely lost confidence in Mpinganjira. So he is such a liar and crocked fellow. Eh eh!!! shame.

  9. Basikolp says:

    Mpinganjira knows he bought the bank for free. He is demanding an audit in order to fire staff. He knew the status of the bank prior to buying asatipusitse with PhD ya fake ngati ya Ben Phiri yo

  10. Prince Aliwid Bin Tahlahla Bin Abhula Ziz says:

    you mean the decision to buy the bank was derived from unaudited accounts…hahaha this is a planned joke,dont fool man.

  11. Kiki Nevin says:

    More fire Dr Thom Mpinganjira. We, donors, wanted the bank sold because of the huge financial burden the bank was posing on the government. Now you know why! The donor community is now very happy that British taxpayers wont pay for this mess.

  12. Masuzgo says:

    Malawians are just jealous. Muzafa muli osauka ndi nsanje basi. Mediocre non achievers. Always complaining. Amwenye, ma burundi , ma taifa like Simama akubwera kumakupangirani dollar kumakunyengerani akazi inu ntchito kumwa mowa basi. Fotseki! Grow up men, be real men like nigerians. Why can’t you open your own bank or why didn’t you bid for MSB?

  13. Majaivane says:

    Why didn’t you demand an audit before purchasing the bank. I smell a rat. Who are you or were you covering up? That does not sound like an informed decision coming from a learned banker

  14. fricodaluka says:

    Its surprising that u made bids for the entity without following the financial aspects of the entity itself in detail….how could you not known that the Bank was making losses???why ddnt u participate in the audit the govt dd before selling??the selling has been the joke of the century indeed and in that speculation will never end…..we are watching…………

  15. Chimani. Game says:


  16. Thom Paul Duncan Nkalodzwa says:

    I can smell a rat here. Mukudziwana bwino. Zanu izooooo

  17. thinktankmalawi says:

    Mpinganjira is just describing the state of MSB now that he is in charge….hoodwinking Malawians for what????

  18. Bob says:

    Some people never cease to amaze. Thus very Thom was in the media some few weeks ago lashing at Malawians who were against hasty sale of the bank as being jealous. Those people wanted all parameters analysed and have a logical sale of bank. Unless you tell us the real motive behind your sentiments otherwise if you go against the fears of patriotic Malawians sitiyimva.

  19. BigMan says:

    Poor Malawians….barking, barking, barking and barking some more……..for nothing!

  20. Jimuni says:

    Reading all these comments and am just laughing. Of course I can agree with the statements suggesting let them deal with each other. Mpinganjira is not stupid neither are tye hoodlums that sold him the bank, both parties to that deal know what they are doing… just that they dont really have to share the neaty greety details with you all.

  21. Chisangalaro says:

    Please release unaudited half year results as well. Don’t try to blindfold us we know your games. Nde nonse kumeneko okonda azimayi. You Phillip Katsala he koma azimayi alimbetu kumeneko.

  22. Chingondo says:

    Mbava zokhazokha inu. You gave each other the bank in private and at night with the aim of hiding the deal from Malawians who owned the bank. Why come to the same public you were hiding from? Keep quiet and do what you promised Malawians.

  23. Edmund says:

    Thom surely no body will believe you. when you want to buy such a big thing you scrutinise every information and I am sure you did that. How come you get surprised now? surely no one can believe this – do not embarrass yourself here. We know you are an entrprenure but no one expect you to make such a silly mistake.

    We only guess that you are trying to make a claim from government – that – we will not accept this time. We also wanted to have share in MSB but you were favoured to get a lions share. Please we do not want to hear this lie that you were duped you were favoured big time.

    Maybe you want to use this ‘discovery’ to retrench some people fine I am sure that is what change management is all about although you lied that no one would lose a job.

    So lucky you for getting the big bank on plate – an early xmas for you !

  24. Aaaaah! Chokani, this z really mind game akadali kukusewelani che Ntata, Nde a chitsiru ndani okanilila Bank ndi ogula Bank? Eish! You guyz ur full of dramas, why now? Who bought the bank for you Mr Mpinganjira? And where were you Mr boss?

  25. Peter Mathanyux says:

    MSB Tis now a private entity and therefore not for public consumption. Go and discuss that as item number 1 or as AOB (Any Other Business) during MUHLAKHO WA AHLOMWE executive meeting.

  26. mmm says:

    That’s business ,you need not to cry but think how you should turn things also happens to us.we buy tomato from tsangano to Zomba but sometimes we loose everything on road accidents however we wake up and go.

  27. chigumula says:

    Intelligent fools! Every Malawian was up against this sell until all issues to do with unpaid loans are sorted out. A few brave citizens even went ahead to try and get court injunctions to ensure the truth about this bank comes out before the sale, meaning if there were some “bad” citizens to be prosecuted, it should be done before sale!
    What did you do? Slash mud on all these people’s faces and went ahead to quickly close the deal. CLEVER NAH?
    You have made your bed, sleep on it. Dont cry foul now. You and your DPP gurus, Leston Mulli and his team are all thieves.
    You thought you were cheating Malawians. Let us see who will have the last laugh!

  28. Hot Iron says:

    Mr. Mpinganjira is increasingly showing his crookedness. He first denied buying the bank earlier when Malawians were crying to Government never to sell the bank. He disregarded the voice of Malawians and went on to acquire the bank. Today he is coming up with a different story. He must be a thief, a great thief, oh no, a great cashgater! But if it is true, then start arresting the systematic thieves. I know they should be from the same region where Mpinganjira is coming from. But if you are lying to us, then Mpinganjira must be arrested when we change government in 2019.

  29. Zabodza izi says:

    This is cooked up. They are up to something. The dates 2013 hhhhhmmm. They know what they are doing. That was the agreement. Its just reminding me of the elections. They were acting as if APM was trailing yet Mbendera knew what was going to happen. Mbendera knew about an hr before midnight he was going to deny Malawians and hand them over. Lets keep watching the movie. Its in series.

  30. Mind game. He is playing with our mind! ZaboZa zonse akunenazi

  31. matutu says:

    Very funny indeed. After all that chaos about toxic debts, someone didn’t care to take heed before buying the bank is funny. The taste of any pudding is in the eating. So Mpinganjira ate it now and is convinced it was a bad deal. Strange & funny.

  32. Kenkkk says:

    It is private company now, swallow the pride and take the losses which your dpp friends benefited most.

    We don’t want to hear that you are seeking compensation from the govt. If you do that then we will know that you and dpp thugs made a deal to milk the govt coffers more for the benefit of your pockets. The only deal we will accept is for you to return the bank back to govt at no expense to either party and then we will conduct a proper sale of the bank.

  33. Kutha mawu says:

    Hoodwinking Malawi.A raw deal this time?Nah nah Mpinganjira don’t lie to us.Muthana pa ulomwe wanu.Forensic lero.So getting rich in a crooked way has become a norm in Malawi?Shame for this impoverished country led by dimwits and full of handclappers who cannot challenge their thieving leaders.

  34. Antiracist says:

    FDH did not do a “Due Diligence”, yet went ahead and made an offer to buy MCB? What kind of banker are you, Mr. Mpinganjira? For who are you doing this deal “blindly”? And now you suggest a forensic audit? Do the honourable thing and resign!


    You’re a liar Mr Mpinganjira. We all know shenanigans regarding the sale of that Bank to you. You’re just throwing up a smokescreen to spruce up the thefty and dishonesty reputation and legacy of yourself, Kangwazi Bingu, Bwampini and Mulli who milked off that Bank.
    We are all aware if there are crooks who brought this once vibrant bank its your bedfellows from Lhomwe Belt.They handed it over to you in crooked way because they want you to cover up their rotten misdeeds or stinky footprints they left there. Your latest spin is part of that conspiracy scheme. We will not swallow your bait.
    Bwapini and Yourselfelf Mwatchera Kumwezi Nkhanga Zawona. Mwauponda.

  36. GPMG says:

    Mpinganjira got the bank he badly wanted and Malawians have made peace with that. He should now go about his business quietly; there is no need for him to continue making noise. There is nothing more to justify. You don’t buy a bank as if you are buying a bunch of bananas – you do a rigorous due diligence review. This means that you check everything, you do not just rely on what management has reported. You verify, you double check.

    Thom is an experienced qualified accountant, so too are some members of his top management. And he was the only bidder. To turn around and suggest that he was somehow duped by MSB management is insulting our intelligence…he knew exactly what he was getting, otherwise he would have walked away early on. In the end he bought MSB, to paraphrase the words of Uladi Mussa, “…as if he was buying Indian Hemp”. He would not have gone to all that trouble for nothing.

  37. Mbanangwa says:

    Mr Mpinganjira, do not cry foul now. Other quarters warned you in advance unfortunately you championed greed. You signed the contract before cross checking the details. What were you up to then? Things were done is such a hurry when everybody else was raising their eyebrows. You got what you wanted. You were duped in a mafia style. Do not cry foul and over spilt milk now.

  38. Nediek says:

    Deals concluded in the evening. Can Malawians believe this? I don’t.

  39. In the know says:

    Thought you are a financial expert and yet you allowed government to dupe you? It seems you just want to change tune so that you retrench staff and close down some branches. Am sure that’s your next step and suffice to say you knew from the outset that that’s what you will do.

  40. jack Phalombe says:

    Tiyeni nazoni

  41. Kenkkk says:

    So you are trying to justify the govt was right to sell to you in the manner it did. The malpractices were being perpetrated for the benefit mostly of your do friends, so how are you going to prosecute them? I will be the first one to commend you if you bring them down and recover the money.

    Then Rbm is coming out very bad on this sale because it was saying msb needed 23bn recapitalization when actually it only needs about 3-6bn which is equivalent to mulli debt. In other words mulli brought down the bank.

  42. mtumbuka1 says:

    It appears to me that thieving has spread across the spectrum and if this tendency goes unchallenged like it is at the moment then collectively as a nation we are heading for disaster. We can’t continue to reward this behavior. This country needs a dictator of some sort to instill discipline back into once a God fearing country. There is somebody who sow this seed of greed and thieving (udf regime I guess) and now every president inherits a rotten system but unfortunately all these leaders chooses to give it a blind eye. You get a whole presidential aid buying a fake PhD only for the presidency to congratulate the guy on the job well done…like seriously guys? A PhD or any from of respect is earned laddies and gentlemen. Now if we have the nerve to steal from our own Malawi savings bank without remorse and shame are we going to spare any foreign investors companies that may think of investing in our country? Are we gonna cry if south African/ American companies come to Malawi with their own labour force and only employing Malawians as gate keepers and garden boys? Food for thought Malawi.

  43. kabotolokamo says:

    Agulitsana zoola!kkkkkkkk!

  44. Jose' says:

    Who is fooling who? Whom can we take seriously here? It is a profit of 2.5bn this month and a loss of 3.2bn next month? Can Malawians take anybody seriously?

  45. Alfred Munduwabo says:


  46. Big papa says:

    komatu ife izi zinatikwana,each&everyday tizingova za msb kapena mr. mapwevupwevu vs ntata? apa deal anathanakale kwinako azingothana okha.

  47. Atambwali Sametana says:

    Chikomekome cha nkhuyu mkati muli nyerere. Timkanena adathela nsiizi. Ali dele mkulinga utayenda naye.



  49. Atambwali Sametana says:

    This foreinsic to be from the time of Muluzi to APM. Ngwazi izi analibe. I salute JZU Tembo.

  50. Barnaba Sila says:


  51. haha says:

    Kikikikikikimikii,???????????????????????????? zili kuno Ku Malawi zosasimbika ndithu. Goodall Gondwe woyeeeee! APM woyeewee! DiPHiPHi woyeewe

  52. Chikopa says:

    Hehehehe! Forced leave for some senior officials who had up to 300 or 88 accumulated days. Pamenepo ndipomwe pakhotera mchira wa nyani. Kulitu vinthu vokathula ndi sizasi. Wena! Wena! Wena! Wena!

  53. jay jay says:

    things falling apart as tough austerity measures will surely be put in place, jobs will be knifed no doubt

  54. KOY KOY says:


  55. Spider Web says:

    shame. you cant buy anything from a mafia

  56. Gas Machine Head says:

    Late Edward Chitsulo would say “Mwadyekana nyama ya galu” Musova!

  57. Nachipanti says:

    Ine I knew the sale of MSB was a dubious deal. Government cooked the accounts to portray favourable results and today the same bank made K2.4b loss in 2014. I second the Forensic Audit because there are alot of Managers who were scandalous at MSB with dubious deals.

  58. MB0BA says:

    Zankutu basi! kufuna kupepeletsa a Malawi basi, kuti tiziti anachita bwino kugulitsa MSB simapanga ma profit ati? mxqiiiiiiii!

  59. Palikanthu says:

    Was it very difficult for your learned experienced self to find out the info you are sharing now prior to buying it? Why should we pity you now when we the owners of the bank pleaded for a slow down in disposing of this bank and you so eagerly rushed to grab it at a giveaway price? Don’t make me believe that you are daft!

  60. Mhesha says:

    No doubt the first entity to seek court injunction was the a group of thieves employed by the same loss-making bank! …and u news men who told you that MSB made profit in the year 2014? You misinform us!!! Mxiiiiieew

  61. half trillion says:

    magula- gula nawenso. timayang’ana kaye ma ‘best before’ date tikalowa mu shop. zako zimenezo

  62. ahoy says:

    Wayambazo Thom, u must beef up your personal security.

  63. MP says:

    Thom, Please stop making noise about MSB. We gave it to you for a song and you are now insulting us. Kodi anali malonda a mphaka? Did you not do your intelligence work well before committing yourself? This was a public institution and the info must have been readily available to interested parties?

    More lies are being peddled on recapitalisation as Goodall used to tell us that he needed over K30BN to recapitalise the bank. Now Thom is talking about 6.3 BN only? which is which?

    You want to use forensic auditors to justify the low price?

  64. Mr Mpinganjira, did the gvt used the Audited financial reports to conduct the sale of the business? If yes what is the name of the auditing film? Are they registered? Did the gvt used un audited financial reports. If yes, why did you got convinced that the numbers on the paper are true. I smell something here.

  65. Kwangwagwa says:

    Mind twisters. Which one between making a profit and a loss should we believe?

  66. chigawenga says:

    He who rolls with dogs gets fleas. I have spoken.

  67. CHILOBWE says:

    Mpinganjira ndi Salanje wathu big man wamkulu kwambiri
    Ulemu kwa inu timapeleka, mwini mpamba ndinu, mwini company amene andale amaopa ndinu

  68. Lombwe Nkulu says:

    “Mpinganjira has suggested that government gave his company (FHD) inaccurate accounts information.” Were they audited accounts or not? If yes, who audited them?

  69. Kadakwiza says:

    Interesting. A Malawi nde timati malonda a mphaka, ugula bwanji trouser usanawone saizi. So all these plans you want to tell us Malawians that Joyce Banda was involved. Lomwes what are you after? Malawi is cursed.

  70. mbwiye wapata says:

    “Vigorously pursue any one..” look at his face and tell me if this Guy is joking…he means business…Mwadya zowawa…Bonongwe and company,run for your lives….this aint cashgate!!! this Guy here is a capitalist nigger..he wont rest until he recoups the last penny…let me sit back and enjoy this!! Mumva M’bebe….
    Exactly what is wrong with this country? the other day it was carlsberg….I am sorry but it is becoming increasingly difficult to remain patriotic…I am just sick and tired of being sick and tired!!!

  71. Chekambewa says:

    Have you seen you people?you made alot of noise when the accounts presented were cooked. worse still the legislators made nose out ofignorancy now look what has been exposed after matate pachuma atapanga kafukufuku

  72. poooooo says:

    beautful beautifu beautiful, we thought nchibwana but ndaona zmene Muntharika amathanthauza. Great vision indeed.

  73. makito says:

    It is a private asset now, why bother us? All staged drama.

  74. Mulli Savings Bank (MSB).

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