UK tells Malawi to ensure MSB loan defaulters are ‘accountable’

British High Commissioner Michael Nevin has urged the Malawi to ensure that those who obtained loans from the State-owned commercial bank, Malawi Savings Bank (MSB) should be accountable and that government should not pay loans on their behalf.

Nevin: Loan defaulters need to be accountable

Nevin: Loan defaulters need to be accountable

For sale: Malawi Savings Bank

For sale: Malawi Savings Bank

The proposed sale of MSB has attracted controversy amid reports that politically connected businesspersons and politicians obtained billions in loans from the bank which government intends to wipe off through promissory notes.

The civil society has also protested the move while some concerned citizens and activists have attempted to block the sale in court.

In published interview, Nevin said the ‘toxic’ loans should be dealt with as part of that process to make the bank viable, but should be done in a transparent manner with no elements of favouritism so that taxpayers should not lose out.

“The issue of toxic debts has to be dealt with as part of that process to make the bank viable, but it has to be done in a transparent manner with no elements of favouritism so that taxpayers should not lose out,” Nevin is quoted by The Nation.

“Any claim against government if they are offsetting loans needs to be verified as genuine,” he said.

In a statement released at weekend, government admitted creating the situation that has put MSB in this predicament, saying it used the bank to offer loans and payments, which ended up compromising the professionalism of the bank’s management.

The statement further said it was government’s strong view that the bad portfolio management practices imposed on the bank’s management would arise regardless of the political party in power
“In particular, each party would exploit the opportunity to abuse the bank on account that it is wholly-owned by the government,” reads the statement in part.

Government said in the statement that political interference in State-owned enterprises is a “worldwide reality”, which supports the argument for privatisation and divestiture, as advanced by the IMF and World Bank.

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26 thoughts on “UK tells Malawi to ensure MSB loan defaulters are ‘accountable’”

  1. Kenkkk says:

    Csos and mps, please monitor also where the 6bn has gone. Has it really been used to recapitalize msb? What evidence have we got?

  2. pipo says:

    Dont stop monitering this government, bcoz it has weaked and foolish readers.

  3. No tribalist lomwe. says:

    Today’s times news is showing some msb loan defaulters’ will have their property sold(auction) why not do the same with the rest. That alone shows great favourism by our leaders.the timing 4 the sale itself is wrong., Shame.

  4. waziyamba weka says:

    Why are these parastatals run by politician? Had it been these thieves were from pakati or kumpoto mnkanamva.potion ndi ur fellow lomwes tuona mpanga chiyani a ana mutharika with ur DPP party.

  5. waziyamba weka says:

    Why are these parastatals run by politician ?kasambra,wapona kita do ur job.

  6. Biyisikolo says:

    DPP has admitted here of abusing the bank. I will shocked if some Malawians shall be commenting in favour of DPP unless they are not patriotic and mentally disturbed. Muli and Bingu borrowed Billions and Peter wants Malawians pay for the Two Thieves may be he was also involved being a blood brother. A Lomwe ndi Ayao aphunzitsa a Malawi kuba awa.

  7. one malawi one people says:

    let the buyer buy together with the toxic assets azikabwezera konko ngongolezo.

    1. Kenkkk says:

      But the govt has already bailed them out, so they must return the money to the govt and pay back their debts to whoever eventually buys the bank.

      But first we want our money back.

  8. mgwantha says:

    Mind you pple of Malawi this Bank is the one who collect government funds in dollars and kwachas everyday. There is need to stop depositing money through it because there is need of verification if indeed the money goes to the government accounts number one,or if the dollars suspense account indeed reaches the government. Malawians lets be patriotic its our government, our problem,no body will solve this for us. There are alot of credits from the Bingu era that is not paid to suppliers from the private sector that needs govt attention. I dont think it will be paid eg immigration has alot of money to pay uniform suppliers which amounts to 5billion kwacha who is going to pay? Its you taxpayers who are going to pay. Passports,border computerisation has alot of money to pay techno brain thats why a month ago the terminated their services.I feel its not only immigration that has such amounts of money to pay suppliers from private sector check all govt departments and come up with billions to pay,we cant prosper like that. Paying toxic loan using taxpayers money is a crime. Let those who obtained it pay back,if it was Bingu,the people responsible for his estates should pay its not only Mulli involved as other pple say.

  9. lesta says:

    This is the reason lhomwes support dpp so much,this country is a laughing stalk,the world will question our integrity if we malawians will just sit and watch politicians rob us of a bank.

  10. Alufeyo says:

    Nevin. Who told you that Mulli and others wont pay? Just because you have insufficient pigment doesnt make you superior. APM already made it clear to Mulli that his govt will not shield him and others who owe MSB money. Why cant Nevin be like the American envoy very polite but from a real economy.

    1. Kenkkk says:

      Alufeyo, When did apm say so about mulli paying the debts? He should say so publicly, why behind the scene? The payments should also be verified if mulli is going to pay.

  11. wa kumangochi says:

    boma lambava ili.A chakwera ndi uladi muwakhaulise ku parliament paka asiye ganizo lopusali.Dpp ndi ya anthu akuba

  12. Wax says:

    It will be only in Malawi where the government pays for an individual because he has simply failed to pay for himself, and he is let loose still doing other business in town!!! How??? If he fails to service his loans, it means he doesn’t have money. Simple and straight forward. Then what should be done? Declare him BANKRUPT. Period. He should never appear again in Malawi within business circles. If he wants to resume, he should first source and repay the government money, i.e. taxpayers money so to speak. He can not be allowed to be enjoying with the other business earnings and on the other side cause pain to the taxpayers. Its a joke to the taxpayers. In-fact what precedence are you setting??? I feel sorry for the so called intellectuals who are championing this idea. They are destroying their own CV just soon before the sun sets for them. Get out if you are tired. Let others run the show.

  13. Kodi a Malawi apa ndipochita kufunika Mzungu kuti timvetsetse kuti zikuchitikazi nzolakwika.ngongole apereke amene anatengawo ndalama za boma zigwire ntchito ya chitukuko.

  14. Kenkkk says:

    Dpp, you will always be thugs and thieves. Yes we agree that eventually the bank should be properly privatized but first of all let all debtors who could have made this bank more viable pay their debts. They are the ones who have made this bank sink. The govt can’t bail out debtors of the bank, where in the world does that happen?

    Why are you dpp thugs not bailing out many hard working malawians who also have bank debts in msb as well as other banks? Be fair, bail out everyone!!

    The country is becoming a laughing stock internationally exposing the inherent corruption of this dpp govt!!! What you are doing is absolutely insane!!!

  15. big testicles says:

    apa ndiye zafika poti ng’ombe zayang’ana ngolo, kapena hule wakana 7 pin…

  16. White Achiwajinji says:

    In civilised society no government would shield bank robbers. We know them and the biggest of them all Mulli is a well known Dpp die hard. This is a unique abuse by the Dpp of MSB. Why cant you just go and recover the K4.9 billion from him by whatever legal means available.

  17. muropwana says:

    Paja Nevin ndindani? Zimene akunenazo ndizachilendo? Zikumukhudza? Chilichonse aikepo mulomo basi? Asalowerere mtsamunda ameneyi. Let courts guide.

  18. I dont agree with whatever has been reported here. If you look at the history of malawi savings bank you will notice dii phi phi government so far that has abused this bank since time in memorial , we just need those who borrowed monies to repay fine

  19. dambudzo mwasanya says:

    Tax payers are not going to pay the loans of Mulli and other lomwe idiots just because they are connected to vagabond Pitala.These lomwe idiots do not own us.It doesn’t require Micheal Nevin to school malawians on this.This is pure thievery.All Malawians should not take this stupidity.

  20. Chifira says:

    Tranparency and accountabilty are equal attributes to good governace. Mathanyula and your gangsters how do you get out of this one, when it rains it pours. Boma mumalifuna lija ndilimenelotu ……… yendestani!

  21. MATTHEWS says:

    Zayambika, paja DPP ndi momwemu, kenaka tikumva kuti mwathamangitsanso kazembe wa Britain yu, m’malo mongokwenya mbala zanu zimene mukuzitetezazo kuti zibweze misonkho yathu, yomwe zidatibera. shame on you !

  22. opportunist says:

    Kkkkkkkkkkk

  23. bwangazi says:

    Malawian politicians are hyenaz!!! Nonse andale kumalawi!! Patumbo panu!! especially dpp politicians! Pa thako panu!!! Dont ask why iam insulting you!! The reasons are obvious ndinu mbava afiti agulu kunyinda!!! Atombolombo inu!!! Stupid!!! Stupid stupid!!! Idiots!!!

  24. muona says:

    It is not that any political party would abuse the bank. Chakwera would respect the bank. many countries that own banks respect parastatals. It is just that in Malawi the leadership is full of thieves.

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