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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27 thoughts on “Sale of Malawi Savings Bank faces hurdle: Mulli fights K3.2bn loan repayment”

  1. 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 to Indians.Now Msb we ll also go to Indians if you keep envying your fellow brother.
    Indians look at us as stupid peolple who gives them advantage not as dpp,mcp,pp,lomwe,tumbuka or sen

  2. DAMBA says:

    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.

  3. snaiper says:

    Why not selling ESCOM


  5. Dr Callister Daniel Phiri says:

    Mulli Gate > Bank Gate

  6. Federal says:

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

  7. Hy says:

    Mulli is Muntharika.

  8. Rhozani Banda says:

    Fire them away

  9. Triphonae says:

    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.

  10. Natchinkha says:

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

  11. ndadabwa says:

    guys its not mulli. this is peter mutharika’s move. a goodal munayamba bwino koma pano mwalowanso uchitsiru. kodi Mulungu bwanji mukumusiya mulli ndi peter mutharika ndi moyo. anthu amenewa sangangofa pa ngozi ya galimoto. ai mwatizunza mokwanira

  12. Poorest country in the world.

  13. Patriot says:

    Blockani blockani akufuna kugula mulli (+ bingu juniyo)

  14. Tiredofnonsense says:

    The very same people who enjoyed with Mulli are now hiding themselves in Parliament and they don’t even want to make any comment at all. At times they feel like walking out of Parliament. They were for front aiding Mulli to obtain billions from MBS. You mean this Government doesn’t know? They know it quite well but put a deaf ear deliberately, this is Malawi BABA. They talk quite a lot and deep in the same plate in the evenings and yet you call Malawi one of the poorest country in the world. ZODANDAULITSA KWABIRI. Also know other banks which swindles clients money by giving different names of loans and these should also be closed down and we know how they collaborate with RBM leadership. RBM is doing to protect the poor Malawian rather protect the banks. What kind of economics is this being practiced at RBM??? The Central bank ought to know all scandals taking place in its country and advise the Police and even the head of state! Scandals of Cashgate, MBS bank and other banks the RBM knew it well in advance and chose to remain silent WHY? because the leadership of it had a share in all such deals and finally renders the ordinary Malawian suffer to hello. It is high time please leave these positions for your children who have fresh brains MWAKALAMBA NDI ZIWALO ZONSE ANTHUNI!!!!!!!!!!!!!!! GO HOME or just be at the home of retired officers Area 18

  15. ujeni says:

    Why is Mulli treated with kids gloves, his loan is more like CASHGATE

  16. Jelbin mk says:

    Really this so called technocratic government is a joke of this century how do you sell a bank to make another bank? Honestly even a standard one kid will argue on the logicality of the decision and can easily question the mentality of such a decision maker.

  17. MRA STAFF says:

    Koma chi Mulli amwene tachidulani dzulendewera mukabudulazo

  18. Malawianah says:

    Onething i dnt andrstnd is that Mulli fails to pay back billions of loans but govrnment wanthim to buy the verysame istuntion in millions..Something is wrong..Dpp is planing for the future war not what people see today.

  19. Member says:

    Ntchito za Mwanamveka zimenezo. Akugwirizana ndi Mulli + APM to strip the nation of its assets. It will be called Mulhakho Savings Bank(MSB). Malawians Lets not allow this. The Government is supposed to bail the bank out as it did before. Those owing the bank must be made to pay back by any means necessary. MSB came out by way of reorganization of Malawi Post Office. It was aimed at assisting all Malawians especially those in rural areas to access banking facilities. If it is sold to private individuals people in rural areas will suffer as these greedy people will concentrate their activities in urban areas. Members of Parliament, please do not allow this to happen.

  20. Ndikutelo says:

    It doesn’t make sense to me mwasankha Jumbe kuti akhale CEO WA bank ya bola yomwe mukufuna kuyambitsa at the same time mukufuna kugulutsa bank Ina? Bwinotu-bwino kapena mukufuna kupitiliza pomwe analekela Bingu, paja analekeza pa K92b?

  21. soko says:

    Tiyenazoni. Amalawi tulo. Mr finance minister; is this the way of going up from the poverty ladder?

  22. Arnold dzanjalimodzi says:

    I need to be taught,hou an overdraft becomes a medium term loan zoona izi.That’s very bad.

  23. Mtupatupa says:

    Big up honourable Dimba, let Mulli pay back his loans to this Bank first, this same trend ADMARC is struggling because people like Eleson Bakili Muluzi, JZU Tembo, Friday Jumbe, Joyce Banda etc borrowed frm ADMARC and never want to serve thier loans to ADMARC, then they thought of commercialise it, in order that they dont pay back. Shame to the rich policians of this no 1 POOREST COUNTRY IN THE WORLD!

  24. Sale says:

    Sell all state owned enterprises zikuononga ndalama za boma

  25. Chipoya LJ. says:

    Today’s Biblical teaching is from Proverbs 13 vs 11.

    All in all, GOD Bless Malawi!!!!

  26. James says:

    Govt running a bank? for crying out loud!! If you are unable to run Universities, Admarc, Waterboard, Escom…can you be entrusted to have 100% shares in a bank? Kobelako ndalama on the name of bad debts basi.

  27. diddy says:

    Cholinga mulli awerulepo asabweze ngongole no wonder we are the poorest in the world, alomwe kungopasana ma billions masanasana anthu akufa mzipatala kusowa mankhwara,ayi mulungu akukantheni ndithu

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