MPs calls MSB sale ‘most heinous corruption scandal’ in Malawi: Govt wants bank handed to Mutharika’s crony

Malawi Congress Party lawmaker Peter Dimba picked the controversial recapitalisation of state-owned Malawi Savings Bank (MSB) to parliament and described it as one of the most heinous corruption scandals, saying government has shielded loan defaulters with tax payers money.

Njobvuyalema:  checklist

Njobvuyalema: MSB robbery byt he Mutharika’s will be stopped

Government has come under intense criticism for injecting K6 billion into MSB to clear off toxic assets instead of simply asking those that owe the bank to repay their loans.

Dimba described the sale and repayment of the loans as “daylight robbery” by government which wants the sale to take place with only one preferred bidder also considered successful in dark rooms.

The lawmaker told parliament that Mulli Brothers Limited and other companies and persons obtained over K6 billion (US$13 million) in loans “to finance” the campaign of the ruling Democratic Progressive Party (DPP), saying government’s decision to take over MSB’s toxic loans is another form of cashgate.

“Mr Speaker, sir, we are experiencing one of the most heinous corruption scandals whose masterminds are the Minister of Finance, the RBM [Reserve Bank of Malawi]governor, some Cabinet ministers and party officials,” said Dimba.

Dimba said his party has evidence indicating that government wants to hand over the bank to FDH Bank, owned by Thom Mpinganjira, whom he described as “Mutharika’s crony, tribesman, DPP campaign financier who sits on the public reforms commission.”

The MP said opposition will not allow “this madness “to continue, saying they will hold budget to ransom until the people’s bank deal is cleared.

He said: “In fact, the MSB corruption scandal will have to be sorted out first before we even begin discussing the budget. Government will have to rescind this theft otherwise the Finance Minister will dance with the budget in this august House.”

MP Joseph Njobvuyalema backed Dimba and pointed out that many lawmakers were opposed to the sale and described it as “a robbery which will be stopped.”

Major on the list of the toxic loans, which government has taken over, is the Mulli Brothers Limited (MBL) loan, which stands at K4 969 043 316.93.

Other defaulters included Varibo Spirits—owned by Duncan Kaonga—at K397 763 522.07, KJ Transways owned by a Mr Mkumba has a K172 536 106.23 loan that has not been serviced, Ganizani Transport owned by Charles Fungula owes the bank K97 908 785.35.

MSB is owed K83 960 954.29 by Maranatha Institute of Education of Ernest Kaonga, K71 220 602.47 from Consolidated Building Contractors owned by Peter Mhone, K69 776 370.81 from CK Construction of Chester Makuwira.

The bank is also failing to collect K68 034 537.28 from Fincoop, K65 910 536.30 from K’s Investments owned by Bintony Kutsaira, K30 717 180.76 from MGI Trading of Macpharen Mpeta Phiri, K27 179 448.51 of Injena Petroleum Limited, K20 722 510.70 of Angel Wings owned by Angel Chaponda Nazombe and K12 782 074.13 of Eranive Trading for Fanny Joshua.

Dimba told parliament that ” the tax payer is paying on behalf of Mulli and other 12 private defaulters as though they were declared bankrupt.”

Following continued concerns  by government benches over issues that Dimba raised, which among others included calling President Mutharika, Finance Minister Goodal Gondwe and Reserve Bank Governor Charles Chuka, as masterminds of the sale of the bank, the Speaker  Richard Msowoya asked Dimba to bring evidence on the allegations to the House on Monday.


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29 thoughts on “MPs calls MSB sale ‘most heinous corruption scandal’ in Malawi: Govt wants bank handed to Mutharika’s crony”

  1. Magolizoo says:

    Ndaweremga ma comment onse,ndipo zikuonetsadi kut anthu a m’malawi ndinu ozindikira ndipo anzeru koma mukafika posakha president mumasakha anthu ot mawa muzawadandaulaso

  2. PA MALAWI says:

    Don’t sale MSB to the president thats totally mistake and its grabing,if u do so we will buy ADMARC and ESCOM with my fellow malawians.

  3. Abale samalani says:

    Iwe @ujeni . U are myopic . U think dpp is in control. There is Jehovah sitting in heaven waiting to show dpp that He is and wl ever b in control of malawi. If dpp were in control it wolud have stopped the death of Bingu. Watch thid space.

  4. Othyola Tea ku Thyolo says:

    It is not a question in the mind of any Malawian with half a brain that the DPP government, with the exception of The VP Saulos Klaus Chilima, is a Kleptocracy.

    And they will get away with the sale of MSB like they always do. The allegation that Bingu was killed is a political ploy to distract the public and a disorganized opposition from this issue.

    1. Maliroagonapati says:

      Yes, they will get away with it, as you put it “as they always do”. But you should remember that their dear leader also stole a lot of money and got away with a lot of things including murder. However, in the end he died like a dog, and his corpse was abandoned by his widow, his brother and everyone else to the extent that the body started decomposing as if it was not the body of the head of state…

      I see DPP’s victory in the sale of MSB as a pyrrhic victory. The sale of MSB will not be the end, but rather the start, of DPP problems as a political party. DPP officials are going to regret this sale in the same way that PP officials are regretting cashgate.

  5. your testicles says:

    nkhani iyi siitha bho. mark my words

  6. patriot says:

    Ths is just too much fo me to bear,Dpp and ur thieves,ull pay 4 ths 1dy

  7. isaac says:

    Why paying Mullis credit?Mr president be serious please, we need that money back,apeleke ndalama zake Mulliyo if not the bank should seize his assets finish and claa.

  8. chakwanuleka says:

    DPP is a party of thieves. We have all the reasons to impeach this president who ascended to power using stolen votes. Now they will keep stealing anything and everything.

  9. Byron says:

    This is the reason Federalism is important.Malawians will always cry because their voting pattern leaves out genuine leaders and elect thieves.These DPP people have no remorse at all when it comes to plundering government resources and depriving the poor.Now two thieving parties have joined hands to become an alliance of corruption and bring the already poor economy to its knees.Any logic for UDF teaming up with DPP in parliament? I guess three;they have the same origin,practice the same doctrine,and believe in enriching the few.Malawians must guard against this dangerous trend,especially Malawians from center and north because they will be the most victimized.It seems most southerners are happy at electing a thief as long as that leader comes from their tribe,what a country!

  10. Dr. Godfrey Ganizani Mvuma says:

    God hear us. Why should such leaders come into these positions that are supposed to safeguard the moral right for Malawi. Please Heavenly Father, come to our rescue again.

  11. Mbwengu says:


  12. Jihadi John says:

    I have always been uncomfortable with Malawians entrusting their affairs in foreign matchonas by electing them presidents. Seriously how can a gay man from Las Vegas have our national interests at heart. APM sees this country simply as a family cash cow without any regard to welfare of the country. This is the price we Malawians will pay for being so daft. At the end of his term after causing so much, plunder, pain and misery to our country, APM will simply flee back to USA to continue enjoying life in the casinos.

  13. John M says:

    Mbendera,Peter and their DPP to HELL!!!!!!!!!!!!

  14. Kenkkk says:

    Mps should demand that this govt of thugs cancel the promissory note bailing msb loan crooks. That msn should be immediately instructed take legal action against mulli and others to recover tax payers money they borrowed from the bank.

    Even if these crooks were bankrupt, still the govt can’t bail them out, on what grounds? If they are bankrupt their assets will be taken over by administrators and sold off to at least pay the debts they had. The govt has absolutely no bailing out business in this matter.

    Mps should tell the govt to bail out all
    Malawians who bank debts as well if it still remains stubborn.

  15. chigawenga says:

    Malawians should not sit phwii while this corrupt government gets away with blatant waste of our resources. We must not only take to the streets but also contact all the donors and let them know what is going on in Malawi. Corruption is live and well in DPP administration. This government can demonize Dr Chakwera and all those that are holding it accountable. Truth be told it is the opposition’s responsibility to provide checks and balances on the government of the day. It is not personal!!

  16. ablo says:

    A teacher gets 55000 on average while robbers are rescued of 6billion fancy that

  17. Alfred Munduwabo says:

    The whole MK92bn cash gate was passing through this Bank called MSB with blessing of Mwanamveka as the controling official . They never thought that there were some spies in that bank , workers and John Bizewick have already passed over the whole information to the opposition Members of Pariament . DDP thought it was clever to use MSB thieving taxpayers money.

  18. Ochibwe says:

    Malawi Electral commission should be fully dissolved for bringing in these thieves! They are here to robe and kill the poor. DPP is full of thieves who have no mercy on the poor. Y should I as poor as I am be paying the loan of Mulli and some millionaires and my leader supporting that! This President is a big fish. The country was handed to the thieves again by the coward Mbendera and his colligues!

  19. Vyachalo says:

    I told you soon after election that Malawian will be ruled by thieves,here we are. Government then should pay all malawian who have taken loans :tobacco like JTI,Limbe leave and all campanies,banks,organisations and other people

  20. nsonga ciswe says:

    Hosni Mubarak ndi ana make jailed for 3 yes for corruption. ICO NDE timati cilungamo cikuoneka.mlandu wa anthu awili ogwidwa ndi mafupa a anthu wazengedwa milungu iwili yokha koma milandu ya anthu PBA ndalama za boma mpaka 4th geneneration idzabwere pali be timvepo kanthu.kaamba mini woyambitsa ndi mtsogoleli siconco

  21. Bangor says:

    A speaker iwe Richard Msowoya, what evidence does he need to bring when it’s common knowledge that mulli owes the bank and that Thom Mpinganjira is a lomwe and financier of DPP campaign . Penapaketu nanu kumakhala ngati kudzaona chomwe an aona Late Munyenyembe

  22. Achimidzimidzi says:

    Mr. Richard Msowoya, don’t force me respect leaders who don’t even recognize me nor do they accept that Malawi belongs all of us. They are accumulating wealth by illigal means and , they are determined to plunder, and destroy.

    What evidence are you looking for? Ask the governor of Reserve Bank and the Minister of Finance what procedures are taken when someone is not repaying bank loans. I want to know whether the answer is to print K6b promissories to repay the loans on behalf of defualters or what?

    And who authorized? Was it your stupid parliament??

    Once I ger answers on these questions then Dimba, may the bring the evidence.

  23. Please let us focus to develop our mother Malawi to look like other countries,chonde chonde we are backward .God help us

  24. MF Jones says:

    I am DPP but I’m with Opposition on this one. Do not pass the budget until this is sorted out. Please fight for us!

  25. Joseph says:

    Point of correction, it was Lyson Goodwin Sibande who wrote that Chakwera should commmed for the “good” he has done, not Kadenje.

  26. Joseph says:

    Finally, some sense coming out of parliament. I hope tha Kadenje guy who wrote to criticise Chakwera on his speech for not applauding the DDP/APM on ” their achievements” can read this. What the DPP “has achieved” is completely absolutely utterly uselessly redudant as compared to the mess they are making/ have made. I will repeat, DPPs are purely practising satanism! Robbing the poor to give to the rich is satanism! Finish and clear..

  27. WINA ALIRA says:

    dpp in control. wina alira…


  28. ujeni says:

    DPP a party of thugs and thieves masquerading as politicians

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