Sale of Malawi Savings Bank faces hurdle: Mulli fights K3.2bn loan repayment

Plans by government to sell a controlling stake in state-owned Malawi Savings Bank (MSB) faces potential blow from lawmakers who want to block the move.

Gondwe: MP Dimba wants him to explain why government intends to sell the bank "on the pretext that it can not run such a business and yet it wants to start another bank"

Gondwe: MP Dimba wants him to explain why government intends to sell the bank “on the pretext that it can not run such a business and yet it wants to start another bank”

The Public Private Partnerships Commission (PPPC) requested strategic investors to buy a controlling stake in MSB in which the government owns 100 percent of its shares.

PPPC did not disclose the sizes of the stakes that are up for sale or how much it was selling them for.

But the government’s divestiture agency said the sale of the stake will help strengthen the financial and operational capabilities of the commercial bank “in a competitive environment.”

However, Member of Parliament for Lilongwe South Peter Dimba has issued a private notice to the National Assembly to question Minister of Finance Goodall Gondwe about the sale of the bank.

Dimba wants Gondwe to explain why government is not recapitalising the bank through public listing (IPO) on the stock exchange so that Malawians are given a chance to own the institution.

The notice further indicates that Dimba wants Gondwe to explain why government intends to sell the bank “on the pretext that it cannot run such a business and yet it wants to start another bank”.

“Why not just restructure MSB to take care of the investment aspect; how do you close a tomato business to start another tomato business? What will happen to the 600 plus employees MSB currently has should the sale materialise,” wondered Dimba.

According to the Reserve Bank of Malawi , the MSB is weighed down by bad loans and it requires a $48.3 million (MWK 23.7 billion) in capital and liquidity by June to satisfy Basel II financial and regulatory requirements or risk being struck off by the central bank..

Malawi Congress Party (MCP) spokeswoman De Jessie Kabwila is faulting government of deliberately failing to intervene in helping the bank to recover millions of kwacha lost to bad loans.

“The privatisation of government assets is meant to benefit a majority of Malawians through shareholding and not just few greedy individuals connected to government,” she said as quoted by Weekend Nation.

Meanwhile, High Court ordered Mulli Brothers Limited (MBL) to repay MSB a K3.2 billion loan, which was obtained as an overdraft about four years ago but was turned into a medium-term loan.

The company had committed to repay the loan over a period of 60 months in equal monthly instalments of K82,131,869.43.

Mulli appealed to Supreme Court to extend the Stay Order they obtained stopping execution of the High Court ruling to pave way for an appeal against the figure.

MBL engaged Johnson and Wilson private auditors and accountants to conduct a forensic audit of its bank accounts in regards to the case.

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mphotomphwanye
Guest
whether it b Mcp,Dpp,Udf or Muli or Paseli i don’t have a problem as long as its a Malawian not an Indian buying the Bank.Sleeping Malawians, We fight criticize each other then a foreigner walks away with money.Lido Electronics evaded Mk 900,000,000 tax no body says anything.Siku transport invades Mk 800,000,000 nobody writes any thing but when its our Malawian eeeeeee.Lets be onerst we are afraid of foreigners.If it was only Lomwes in Limbe just like there only Indians in Limbe people would talk and talk.Wake uplease. Confozi is now owned by Indians,Malawians & Mike Chilewe has just lost Namin,gomba… Read more »
DAMBA
Guest

We, from the other financial institutions were interested in buying MSB. But we have quietly been informed that this bank will go to Mulhakho Tom Mpinganjira of FDH. And Mulii and Peter Mutharika will work behind the scenes. PLease MPs, block this. Let the process be transparent or it should be sold to the public.

snaiper
Guest

Why not selling ESCOM

ALHAJI SHARIA
Guest

ASAAAAAA….THIS MAN MULI..WHY IS HE BEEING HANDLED WITH KID S GLOVES? YOU MEAN EVEN SUPREME COURT JUDGES ARE ON HOS PAY ROLL AS TO GRANT STAY ORDERS IN A MATTER LIKE THIS?

Dr Callister Daniel Phiri
Guest
Dr Callister Daniel Phiri

Mulli Gate > Bank Gate

Federal
Guest

Just last year our airline company was sold to start another airline airline company. Where were these mps ndi anthu ena ogona inu?

Hy
Guest

Mulli is Muntharika.

Rhozani Banda
Guest

Fire them away

Triphonae
Guest

You fools commenting about government closing one bank to open another bank should google the difference between a commercial bank and a development bank. Stop showcasing ignorance in the public arena please.

Natchinkha
Guest

Malawians wake up please.This is another cash- gate.

wpDiscuz

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