Malawian politician and business guru Mark Katsonga Phiri faces a hitch in his presidential dreams after the National Bank of Malawi recently confiscated his AGMA House at Maselema in Blantyre and a farm in Neno after he failed to settle a loan of slightly over K300 million.
Katsonga, who owns AXA Bus Service and is president of the People’s Progressive Movement (PPM), was forced to surrender the three storey building and the farm after he failed to honour the loan despite several negotiations with the bank.
According to sources close to the case, the flamboyant politician had used the building and the farm as collateral in securing the loan.
“Actually, the bank has been very patient with Mr Katsonga and they have tried negotiating with him to try and get him to repay the loan but he has been busy with his political campaign,” said the source.
Another source confided in Nyasa Times that the building and the farm have already been handed over to Trust Auctioneers for disposal to enable the bank to recover its money.
However, Nyasa Times could not establish what the loan was meant to finance as Katsonga is known to run several businesses aside the fleet of buses.
This is not the first time Katsonga has been in the red.
A few years ago, a German supplier repossessed Katsonga’s home and personal care business, Candlex Limited after the businessman had failed to pay the supplier.
Back then, Katsonga said the debt has accumulated to the fluctuation of the Malawi kwacha.
Katsonga was not immediately available for comment, his office said on Tuesday.Follow and Subscribe Nyasa TV :