Mulli should be forced to pay back Malawi Savings Bank loans -Parliament

The Budget and Finance Committee of Parliament has recommended that government should force Mulli Brothers conglomerate and others who owe wholly-state owned Malawi Savings Bank “toxic” loans to pay back and ensure they recapitalise MSB to enable it meet regulatory requirements on capital and liquidity that authorities once put at around K23 billion (US$5.1 million).

Chiphiko:  Recapitalise Malawi Savings Bank

Chiphiko: Recapitalise Malawi Savings Bank

Opposition lawmakers claimed in parliament that government wants to hand over the bank to FDH Bank, owned by Thom Mpinganjira, whom Malawi Congress Party (MCP) MP Peter Dimba described as “Mutharika’s crony, tribesman, DPP campaign financier who sits on the public reforms commission.”

In his report to Parliament on Wednesday, y following its consultations in March this year, chairperson of the committee Rhino Chiphiko said they have found that if government helped the bank to collect money on its non-performing loans from politically exposed individuals and companies, it could be in a healthy financial position to be sold to the public through an initial public offering.

“Government should assist MSB board by forcing Mulli Brothers to pay back long outstanding debts and the courts should exercise their total independence and expedite the Mulli case,” said Chiphiko.

Many people have described MSB sale deal as similar to Cashgate—the systematic plunder of billions of kwacha from Treasury.

Government had indicated that they set up a yet-to-be-named independent agency to collect outstanding loans owed to MSB.

It was reported that two of the individuals earmarked for the job are Chadwick Mphande, former chief executive officer of Carlsberg Malawi Limited who also serves as a director of NBS Bank and chartered accountant Nkondola Uka, a managing partner in accounting, audit and business advisory firm Deloitte.

The strategy is for the team to collect the debts owed to MSB to demonstrate that government was not bailing out the politically linked debtors.

Meanwhile, Budget and Finance Committee of Parliament accused the Public Private Partnership Commission, the Reserve Bank of Malawi and Capital Hill of using guess work to determine the value of the bank.

“The committee is concerned that the bank maybe sold for a song. The difference in information on the current value of the bank and amount required to take it back on its feet shows that no independent valuer has been engaged to determine the real value of the bank,” he said.

Minister of Finance Goodall Gondwe would be put before President Peter Mutharika who would make the final determination on the fate of the bank.

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26 thoughts on “Mulli should be forced to pay back Malawi Savings Bank loans -Parliament”

  1. king says:

    musanditukwanitsa, kodi mulliumadzitenga shasha kwambiri eti, ok mfwethu ur next

  2. bob says:

    Mulli has been a sacred cow for a long time and this is totally unacceptable. As Parliament has said this sacred cow must pay back money owed to the Savings Bank, If not his property must be sequestrated to pay back the debt

  3. wit marley says:

    we must also sell malawi national team

  4. mbani says:

    what do u expect if the money went in someone s pockets using Mulli as a conduit

  5. chisomo kulinga says:

    Hie

  6. vaanwyk says:

    lt takes a million people to buld a reputation but it takes one stupid fool to destroy it. Mbendela and Chilima are stupid fools destroying malawi. l will, for one, never forget or forgive Mbendela. Tuvutika pano kamba kobesa mpando waupresident.

  7. thinktankmalawi says:

    Parliament is a house of barking.they hold press conferences as if they are against executive decisions..they care about daily allowances. ..and smile all the way to the bank…

  8. Serenje says:

    I can see big revolution to take place in Malawi ! Our prophets are praying very hard. If u people who given power to defend poor malawians cant help us, God himself will help us. In the book of acts when de king didnt honour God by opressing the poor God killed him mysteriously just like Bingu died de same. So a word to you DPP galus , read this with cautious, Malawi has prayer warious dat make even the mountains of Mulanje to move & fall on Ndata. Peter, chilima,.muli , chaponda , Atupele, etc beware of this people are in closets praying fr Malawi , the intensity of prayers is huge. The whole nation is @ pains with you. Nothing is moving for poor malawians , & we are asking God to fight this war for us, better give us leaders lord who love malawi, & let these othets disappear like Datan & cola. We rest our case to you lord. We know lord you have huge army dat can smote these in the blink of an eye.

  9. Kadakwiza says:

    Malawians crying like babies

  10. Blame on two pple chilima and mbendela

  11. God will Hold Saulosi Chilima responsible for whatever malawiana are going thru. Chilima n company imposed this government on us.

    Kakudikira kudzatera mesa kanauluka kale!

  12. Mawu a olira do not forget that you are dealing with crooks Muli is not alone

  13. mbuyuni says:

    A bag of maize is going on average at K10,000, cement and maize to the people who voted first.

  14. BigMan says:

    This committee is clearly dull.

  15. JEREMIAH MTAMA says:

    MAXON MBENDERA, WE WILL NEVER FORGET U FOR YOUR DOOMING PROPHESSOR, THE HYPOCRISY PRESIDENT MUTHARIKA VERY PITY WHERE ARE U TAKING US TO? GOD IS THERE WATCHING. MR CHILIMA PAJA UMATI TIKULANDIRA MA CHEJI NDIYE PANO KUBWERA KWAKO TIKULANDIRA CHANI????

  16. Sounds like a rip off to me

  17. Pat N says:

    This Peter of yours I can hardly understand how He is running this government business. Sad why did Saulos Chilima get us to this. Feeling sorry for this country.

  18. another state funeral is coming

  19. mdyomba uladi says:

    May the good lord have mercy on malawi as we are driven to tradegic destination! Zidze pano za tonse as malawians!

  20. chithope says:

    Muli abweze ndalamazo kaya amamutuma dubious scholar uja asova coz anaipeza bankiyi so zautsilu ai

  21. Gotedwa says:

    By the way where was JB getting the electricity? The period she was in office we forgot about black outs but it appears that we are now back to where we were three years. We thought when the DPP forced itself upon us as a ruling party it had something better to offer?

  22. mwahana says:

    This country is heading towards big disaster.MPs and people are heading North whereas Government is heading towards South. Soon the country will be torn apart!!!!!!!

  23. Leviticus says:

    Over a month since the DPP government bailed out its cronies and financiers, still absolutely no movement on this supposed ‘agency’ that is supposed to recover these corrupt debts.

    Maybe it will start going in the next 12-24 months? And then start ‘collecting’ the debts maybe in the next 50 years?

    Nonsense. We all know these ‘debts’ are never going to be collected since they were used to influence the election for Mutharika and built ridiculous structures like Ndata. The rest are probably stashed away in secretive places like Cayman Islands or Switzerland. Mulli doesn’t have anything to pay back!

    He sits on the public reforms commission? Good God! Then for sure these ‘reforms’ are a joke that will be used to ensure Mulli Brothers gets more government contracts at inflated prices.

    More money in DPP’s pocket, more money to influence elections. Bravo Mr. Saulos.

  24. Mbewa ndi nchira says:

    Hon. Chiphiko, wishful thinking.

    Just to remind you, you are talking to Lhomwe government. What you saying can not be done. Never ever.

    The reason why government is selling the bank is exactly to default

  25. Nyau Isthobwa says:

    The problem with mathyona is Kumsava anthu awa pamene amapanga campaign amanena zinthu izi
    1 Nyanja ya Malawi palibe zokambira ndiyathu basi lero kulinziiiiiiiiiii
    2 Malata cement aliyense lero kuli ziiiiiiiiiiiiiiii
    3 k92km kuliziiiiiiiiiiiiiiiii
    4 MSB
    5 Nepotism
    6Medicine in the hospitals
    7 No salary for civil servant
    8Hunger
    9Floods
    Busy with mapwevupwevu

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