MPs turn to court to block Malawi Savings Bank sale

Malawi lawmakers are turning to the courts in an effort to block the sale of Malawi Savings Bank (MSB), describing the move as an attempt to rob the people.

Leaders of Legal Affairs Committee Chairperson Lewis Chakhwantha and a member of the Budget and Finance Committee of parliament Peter Dimba told reporters in Lilongwe on Wednesday that they will ask courts to stop the government from selling the bank, describing the move as an attempt to rob the people., the Daily Times reports.

Chakwantha (left) : Seeking court intervention

Chakwantha (left) : Seeking court intervention

Chakhwantha, a lawyer by training, conceded that much as Parliament does not have a legal backing to argue their case and the government has not flouted any law in the sale; MPs as representatives of the people they
have a locus standi which is the ‘right to bring action, to be heard in court, or to address the Court on a matter before it’

“We must understand that on the first place laws are made by people for the people. The paramount aim or objective of any written law is to serve the interest of people. So even if a law can border on technicalities or legal jargons, the spirit of the law is to serve to the interest of the people”, explained Chakhwantha, as quoted by the paper.

But spokesperson for the Treasury Nations Msowoya said the MPs have no basis to seek court redress because “the people to be protected are the Malawians who are also the depositors and it is the interest of these that government is trying to protect by inviting strategic investors.”

Public Private Partnership Commission (PPPC) on Monday opened tenders requesting strategic investors to buy a controlling stake in MSB in which the government owns 100 percent of its shares.

The MPs however claimed that it has already been set-up that Malawi’s fastest growing bank, FDH will buy the tax payer stakes in the bank.

The bank, founded in 2008, is a 100% subsidiary of FDH Financial Holdings Limited (FDHFHL).

“Government intends to sell the bank to few individuals including FDH Holdings at a give away price, when the bank’s assets as of November 2014 were in excess of K46 billion”, said Dimba.

Dimba sai Secretary to Treasury is issuing instructions to the government’s divestiture agency to offer FDH Bank the sale of MSB.

Said Dimba:”If the sale is sincerely by tender, why is the Secretary to the Treasury’s office issuing instructions to PPPC to sell the bank to FDH Bank and render the whole bidding process a farce when they have already concluded the deal behind the scenes?”

The sale of the bank has met resistance from MP who pushed a motion in Parliament last month halting the sale to pave the way for investigations on its viability.

The MPs argue that MSB is the only bank that has wide coverage in the country, especially in rural areas where their constituents are located.

The legislators also accused Finance Minister Goodal Gondwe of being dishonest for informing Parliament that government will halt the sale of the bank when the PPPC is proceeding with the sale.

According to Dimba, MSB already meets minimum capital requirements of US$ 5 million (K2.2 billion to reach the optimum capitalisation level which is ironically what some companies owe the bank,

He also said the central bank is deliberately inflating the capital requirement for the bank to be Base II compliant to K23.7 billion when in fact the bank needs only K5 billion to recapitalise to optimal levels,

“Government is making arrangements as part of the sale process to firstly, write off some toxic debt before the buyout thereby making Malawians repay the toxic loans,” he said.

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48 thoughts on “MPs turn to court to block Malawi Savings Bank sale”

  1. palmdigger says:

    Koma abale, chonchi tidziyembekedzera kut malawi atukuka?

  2. izek says:

    Proud of those two MPs who are fighting for our public asset

  3. Nyamkaka says:

    At 42, why sell the bank? The fact government has abused is not reason enough to sell it. The bank belongs to the people. A good government will come ion 2019 and will let the bank be run efficiently.
    The private sector does not run institutions as you think. These are the most inefficient institutions. The make more profits because of profiteering. They overcharge their goods and services. They are in business.

  4. Eeish says:

    Sell the bank. It has been abused too much. The private sector will run it more efficiently. It is a lesser evil to let it go to private sector that keep it and abuse it and risk complete closure. Inu a MCP, mukulira chani ndi ndale zanuzo. Do nyou really think FDH and one Mpinganjira will give free money to DPP during the 2019 election. Silly!

  5. KAYIRA says:

    Iwe Mkwaso aka George Mankhwala ndi mbatama. Basi what goes around you is tribalism and nepotism. That is why your comment is shallow, myopic, symptomatic to a dunderhead: mpake school imakuvuta ku polytechnic. Ntchito kukalembetsa ma assignment. Ndetche lako

  6. KAYIRA says:

    Mkwaso ndi George Mankhwala waku MRA, who rose through ranks ku MRA ko coz of nothing apart from nepotism

  7. zandile says:

    Please MPs can you get an injuction to STOP this madness!

  8. zandile says:

    Mkwaso you are just useless. You don’t know anything. Just shut up. Politicians messed up the MSB. The bank does not need any strategic partner. Govt shed capitalise it and let it run professionally. Goodall Gondwe and other politicians are to blame.

  9. Tengupenya says:

    Why write off loans to a national bank? Is government saying they now have a safety net for debtors owing its banks huge loans? If this is not kleptocracy we wonder who must ever complain of cash gate in the high places. Chilembwe, Chihana and others fought for our freedom in vain. We are still chained by economic oppressors worse than the thangata masters. We are still oppressed by the highest political echelons acting with popular consent worse than the case was in the one party era of police-state authority. The irony is that it is the very acclaimed champions of the new Malawi dispensation who are at the forefront of chaperoning this new oppression politically and economically. So it was thangata then chitanganya, then one-party, and now kleptocracy.

  10. tonde says:

    And this CEO – Jumbe is waiting for the Govt to establish another bank to aid his appointees to loot taxpayers. That is the problem when you vote along tribal lines. Continue stealing from us and We will just look unto God to help us.

  11. cash gate says:

    Mfiti Zawanthu, Zodziwa A Maxon Mbendera Izi, Pitala Ndi Dpp Aliwononga Dzikoli Moti Akufuna Kuti Akagulitsa Ndalamazo Abe Akamangenso Casablanka, Tikudziwanso Kuti Akufuna Kugulitsa Admarc, Shame On You

  12. chiroad says:

    That’s why the minister of finance can’t go for retirement . He is but still wants to milk our government. Please dont sale Malawi property popeza inu your days are numbered including uour president. Timati ngati mulibe mamo musamaswe phale.muwasiire ana chifukwa ali ndi masiku ambiri . Azigogo amtima woipa you want when going everything should go with you. Azanu a Kamuzu Anazisiya bwinobwino. koma inu ppsalima mukungofuna kukolora!

  13. FDHBSTAFF says:

    MALAWIANS SHOULD REFRAIN TO DEAL WITH MALAWI SAVINGS BANK WITH IMMEDIATE EFFECT AND BETTER REMOVE YOUR MONEY FROMTHIS BANK. ZIMBABWEANS WERE ROBBED BY THE SAME GUY THOM MPINGANJIRA AND THEY WERE LEFT IN COLD AND SAME IS BEING APPLIED HERE IN MALAWI BEING USED BY DDP GURUS. WE KNOW IT VERY WELL. HIGH COURT MUST SAVE MALAWIANS PLEASE OTHERWISE CHIKWANTHA IS TAKING SENSE. WE KNOW WHO WANTS TO BUY THE BANK. ITS A BAND OF CROOKS WITHIN MALAWI INCLUDING THOM MPINGANJIRA HIMSELF WHO IS BEING USED. REMEMBER MALAWIANS 90% OF CASH GATE WERE FOUND AT MPINGANJIRA’S FDH BANK THE MAN IS 100% A CROOK IN THIS COUNTRY.

  14. nyapankhwesa says:

    Tisalire lero amalawi,chidali chisankho chathu,vuto ndi ili amalawi sitichedwa kuiwala,timaiwala ndi miyambi yomwe kuti m’phechepeche mwa njovu sadusamo kawiri,cheya adagulisa macompany onse dr Banda adawasiya,leronso tiyembekezere zomwezija nanga si Dpp/ Udf alliance,tisalire mokweza amalawi ndizomwe tinkering

  15. Mwama Du says:

    GO PETER LOOT US!

  16. moya says:

    Malawi is being looted in day light and some people are seeing that and crying loud whilst others don’t know what’s happening and as usual the second group is the majority.poor nyasaland

  17. Alufeyo says:

    Cheyo you are a big fool. The sale of MSB is worse than cashgate. One of the businessman who owes MSB has a business that is still thriving why cant we make him pay before trying to dispose of the bank just to save DPP supporters. I feel sorry for pur MPs because they still have not tealised that they dont matter in this country. Pse my honourable MPs dont waste your time by going to court you wont succeed. The courts are very corrupt and incompetent.

  18. tsetsefly says:

    Allow Mr Clueless to complete the works left by his brother. The target was to swindle govt K150 billion. The departed DPP hero (my foot!!!) who was also called the MOSES of today, only managed a K92 billion. So, he has K58 billion which is work-in-progress. Please, the opposition don’t be tough on this poor son of Goliati.

  19. Tawonga says:

    Why does Government fail when it has a huge crop of educated people within the bank itself? Why cant the bank hire well qualified personnel if such personnel is absent in the bank?

    If Mr Thom Mpinganjira of FDH and his team have the potential, ability and tenacity to turn around fortunes of MSB, surely there is no real justification to sell the bank because the expertize to turn it around the bank is not a preserve of FDH Management. We also want to inform Government that we are not happy the way Commercial bank was sold to Standard Bank during the Muluzi administration. You people are fond of destroying what our Fathers sweated for the betterment of Malawians.

    NOW, it appears that you the Mutharika administration are displaying your arrogance by going ahead with the sale. When shall you stop such arrogance and contempt of the people of Malawi.

  20. Golomoti says:

    Government has failed to efficiently run this Bank and that’s why it is inviting strategic partners to buy stakes so that the Bank can compete well on the market. This Bank will remain in Malawi and Malawians will still benefit from its services. Amene mukutokotanu where were you when the whole presidential plane was sold?

  21. Ezekiel says:

    Mr. Real northerner the issue here is not about Kasambara and what these pipo are fighting for is also vital to the development of this nation the authority here are playing fouls otherwise if not take careful these people wil again embezzle mora so pliz this is serious issue my brother.

  22. Mvula J. Mvula says:

    If the peoples’ representatives (MP’s) have halted the process of selling MSB, why does Government want to continue the process. Let us be serious, is this not self defeating?

  23. james Singini says:

    Kwathu kuno achuluka ndi afisi ongofuna pamene pali zabwino kukonza sadziwa. Muona mmene achulukire masapota ofuna kugulitsa. Zichewa zonsezo akulankhula kuti akufuna kthandiza a Malawi zabodza zimenezo. Ku JONI ndikumene kuli anthudi ofuna kuthandiza dziko lawo. Amawaduda mu Parliament kuwanyoza koma sa tekeseka

  24. Achimidzimidzi says:

    Anthu amene munavotera Peter Mutharika munandilakwira.
    Nanga pali nzeru apa? Almost daily we hear sad developments.

    If government was told to do further investigations before the sale then its expected of government to bring the findings to parliament for further discussions and conclusion of the matter.

    Winiko, akuti amalodza anthu sangandilodzereko a pulezidenthi? Anditopetsa.

  25. Mwanna says:

    I support the motion to sell Mr Speaker, Sir, monopoly too much.

  26. You are fighting on issues which Malawians are not interested with. Malawians want opposition MPs to pressurize govt on the fast conclusion of cash gate cases and not what you are fighting for. If indeed Chakhwantha is a trained lawyer, why is he failing to mobilise his colleagues in the opposition to stop stupid Kasambara from practicing law. Why. Malawians will always rally behind you if you have taken a bold step to ensure that cash gate cases have been finalised. That is all.

  27. Maximum Prison says:

    What about Mulli Brothers K3 billion loan it took from the bank?

  28. Taweni says:

    FDH is a front of DPP. There is no way they could fast -track the disposal other than to a related venture with roots in Mulhakho country.

    Citizen

  29. kodi says:

    Koms ana awiri awa ndiye ali olimba mtima yes. Nanga ma MP ena aja alikuti?

  30. Hamu says:

    Malawi!!!!!!!

  31. dafuq??? says:

    tidziwe kaye anthu amene ali ndi ngongole ku bankiko. ndatopa ndikumangolipila msonkho odyerera nkukhala ena. bwezani ngongole. shatap!

  32. Ufiti Wachilomwe says:

    This is your assignment Mr Chakwera. You are the only one now who can rescue us from this mob justice vialomwe elite is unleashing on us. The people of Malawi are looking to you for the restoration of their diginity.

    You will have to do what Chilembwe did, put Christianity aside and lead like a non believer. Chifukwa mukati tiyendere za chikhirisitu ndi achina Goodall/Mathanyula ndithu tidya deya mapeto ake.

    Please lead us to stopping this crazy leadership of Mutharika. And please time is now.

  33. Mkwaso says:

    My reading is that this whole thing is coming from within the bank- staff who have messed up the bank big time and are afraid of being exposed and fired. What’s wrong with inviting a strategic partner to save the bank? The Financial Services Act (2010) clearly stipulates how banks should operate and the regulatory powers of RBM. Unfortunately MPs are barking without substance because they are being manipulated by inside staffers who are separate to cover up their mess. Period!

    1. Peter says:

      Compatriot, this is a dubious sale to a DPP Crony and Reforms Commissioner,Thom Mpinganjira.why not raise capital thru IPO on Mw Stock Exchange as opposed to selling it for a song to Mpinganjira if Govt is sincere about recapitalisation to comply with Basel II.

  34. malawian says:

    can someone tell us why there is a need to sell MSB

  35. nazimbiri says:

    DIESEL PETROL PALIBE (DPP) satithandiza.koma mbuyache mwatoonjezatu apa

  36. Patriot says:

    I support the move.

  37. chatonda says:

    Two things are clear here. One, as one has already mentioned that MSB is the bank that DPP stole money from during the previous regime and they want to hide the information. Secondly, FDH Bank is owned by Thom Mpinganjira and Joesph Mwanavekha and they want to give the bank at give away price because this will be the DPP Bank come 2019.. Let the wheels of justice take their course and put the devil to shame during daylight.
    You cannot hide your cashgate cases of 92 billion through sale of the bank you stole from. Sorry Mwatchera kumwezi Nkhanga Zaona. SHAME ON YOU ND IF YOU ARE KNEELING DOIWN TO IMF AND WORLD BANK, YOU WILL BE FOOLED FOR LIFE BUT MALAWI WILL REMAIN POOR BECAUSE OF PEOPLE LIKE YOU.
    rEAD THE BOOK BY DR DAMBISA MOYO CALLED DEAD AID.

  38. Mwinithengo says:

    JB sold presidential jet and now APM wants to sell MSB.What vision our leaders have.Icant understand them.

  39. mphande yituwa says:

    Time to perish because of poor voting

  40. tuvi says:

    LET PEOPLE KNOW THE TRUTH ABOUT ALL THIS. The truth of the matter is- MSB has been the bank that Cashgaters were using especially during Bingu’s K92bn era, so they are trying tooth and nail to cancel all evidence by selling the bank. they will do everything possible to do it, wether u call them executive arrogance or not as long as they fulfil their wish, Goodall knows this

    1. nyasi says:

      I like yur comment……that’s true

  41. Chibwe says:

    I only smell politics on the part of the opposition trying to block the transaction. FDH is a native Malawian bank, what is wrong with it? After all government is only selling part of its shares not the whole bank outright. Yakula ndi nsanje apa basi

  42. Nameless says:

    why are you selling the bank???is it for the benefit of the national or your families?

  43. MBACHI says:

    Akanganya awa ndi mbabva zotherathu. Kumene anachonako a Petala, Gondwe ndi a Chaponda anabwerako chabe ndicho chifukwa ali busy stealing our money. MPs please protect us. We rely on you. A Chakwera be strong otherwise awomolamo zonse ndalama.

  44. Chidzukulu cha Akwitusya says:

    Its time to pay the sins we commited in the last elections…..Malawians we are to pay for our sins….

  45. peter says:

    Time will come when the will of people will prevail and when such time comes people and companies whose past actions will be found to be against the will of people will face the consequences of their past actions.
    I would advise Mr Mpinganjira and friends to act faithfully so that the greater good is upheld against selfish temporary pleasures associated with DPP’s crookedness that may likely backfire in your lifetime or beyond.

  46. mbwaxe says:

    Gud move!!!! Tiyeninaoni alomwewa!!!! Anthu odya njokawa!!! Zawo ndi ntchito zoipa kuba, ufiti, uhule, kubeleka chisawawa!!!! Za pathako basi!!!!!!!!!

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