Court OKs Malawi Savings Bank to sale Mulli assets: Pegged at K3.3 Billion

May 22, 2015 Yankho Msukwa -Nyasa Times 85 Comments

Malawi Supreme Court judges have given Malawi Savings Bank (MSB) a go ahead to sale Mulli Brothers Limited assets worth about K3.3 billion.

Toxic assets for sale
Toxic assets for sale

MBL owes the bank a reported 83 percent of the bad debt amounting to K4,97 billion.

At the moment, MSB is embroiled in controversy following government’s decision to sell it. The controversy followed reports that politically connected businesspersons and politicians obtained billions in loans from the bank which government intends to wipe off through promissory notes.

Civil Society Organizations (CSOs) recently protested against the impending sale of state-owned bank, urging government to recapitalize the bank instead of selling it.

However, British High Commissioner Michael Nevin urged government to ensure that those who obtained loans from MSB should be accountable and that government should not pay loans on their behalf.

Government argues that the K6 billion it intends to inject into is at aimed improving the bank’s liquidity position to preserve depositors’ funds.

Government also argues that the movie is a way of institutionalizing the process of recovering the bank’s bad debts, a process to be effected by an independent company.

But amid the controversy over the bank going into private ownership, MSB has advertised for sale of MBL property.

According to an advert appearing in one of the local dailies, the properties are;

Estate in Thyolo district with more than 70 structures which include office blocks, dwelling houses for staff warehouse—Reserve Price K466,265,000.00;

Tea Estate in Mulanje with developments on the plot comprising an office block, workshop, warehouses, tea factory dwelling houses and water pumps, among others—Reserve Price K1,754,158,600.00;

An estate and a Tourist Lodge, situated along the Mulanje—Phalombe road and it extends on 1,360 hectares of land. Reserve Price K584,245,000.00;

And Commercial property in Blantyre comprising an administration office block, a garment factory building, two timber sheds and guest house, among others worth K514,870,000.00.

Judiciary spokesperson Mlenga Mvula said the case came under Supreme Court Judge Robert Chinangwa on February 4 this year for hearing.

But before Chinangwa made his ruling, MSB questioned whether it was procedural that the matter be decided upon by a single judge.

On Monday this week, a quorum of Judges Maxon Mbendera, Dustain Mwaungulu and Frank Kapanda met to determine on MSB’s concern on whether a single judge was supposed to proceed to a make a ruling in the matter.

“The court has cleared us to go ahead with the sale, hence the advertisements appearing the daily papers,” said MSB Legal Adviser Fidelia Mluwila.

MSB has been pursuing MBL over the loans since December 2012 when it filed the case with the High Court—Commercial Division—in Blantyre. The court ordered MBL to repay the loan that had risen to K3.2 billion at that time.

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85 replies on “Court OKs Malawi Savings Bank to sale Mulli assets: Pegged at K3.3 Billion”

  5. Ndiye kuti ma NGO ndi a opposition amanamiza dziko eti? Amalawi tidzuke athuwa asatisewere juga. Political milage ivuta apa. I hope boma liwafotokozera bwino amalawi and show what the opposition and the NGOs connived to do. Shame on you. Ndisamve wina ku parliament akuchita sabottage budget on MSB issue. Bola ya accountability’yo ndimva koma iyi ayi. Closed story.

  6. We will never cease to be hoodwinked by governments.I don’t think there’ll be a government that’ll put the welfare of Malawians at heart.The world is full of selfish,progandists and bloody bandits!

  7. We will never cease to be hoodwinked by governments.I don’t a government that’ll put the welfare of Malawians at heart.The world is full of selfish,progandists and bloody bandits!

  9. Koma anthu ku skulu munapitadi? Loans are given on collateral, ndekuti Mulli yo kolatero yake inali imeneyiyi kaya. Sangangopita kuka landa Chombe Tea Kapena National Bus opanda chilolezo cha Khothi.. Olo mumunene chotani ndi clever business mani be basi, wangopeleka zinthu zimene sizim’mbweletsera phindu. kungotinso aMalawi nsanje zinakuchulukirani, anakakhala m’mwenye sibwezi mutalankhulapo, Koma chifukwa ndi munthu okuda Basi, mwati mulankhulepo. Munthu olo mumunene, akudyabe his hard earned millions, billionsinso mwina.

  10. Gulitsani Chombe Tea company, National Bus, ku Chikangawanso uku, ndi iyi imapanga za mankhwalayi, kaya mumati chani kaya, ma tanker ali mbweee awanso gulitsani. ZImenezi ndi zomwe zingagulidwe mwachangu osati mukutsatsa apazi. Zabodza izi zongofuna kuphimba anthu mmaso kuti budget idutse

  11. Koma fans mungochita macommenet out of ignorance. Do you know politics? Do you think Mulli is as poor as you think? many of his assets are abroad, Mozambique and China, zomwe zili kunozi ndi machanje basi. Kodi simudziwa akharupa inu? How I wish CSOs team up to buy Mulli’s assets quickly. Angwime amenewatu ngati ali ndi dollar. Tchito kuyenda mufumbi basi.

  13. Thanks to u God that the little i had i can manage to eat and feed my family rather than to b seen as a very richman koma ngongole phwii zomwe @ last kumasowa nazo mtendere mu mtima ~ these mulli guys could have stopped zongongolazi and concetrate 4 the little they have

  14. Komatu a Mulli ngongoleyi siyawo, ikanakhala yawo bwenzi atabwenza kalekale. Ngongole ndi ya malalemu aja, ndichifukwa boma linayesetsa kuti Mulli asabwenze podziwa kuti wa patsindwi anakawulura wa padzala. Pamene chitsilu chikulangidwa ochenjela amatengerapo phunzilo. Inu ama business amene mumatengeka ndi anthu andale mutengelepo phunzilo apa. Apatu ma kampani omwe akugulitsidwa si amaleremu kapena mphwake kapena ana ache ayi. Olo a Mulli atati anene chilungamo siziphula kathu chifukwa mapepela angongole ali mdzina lawo. Wagwa nayo basi inu simungadabwe ndikuti munawona boma likubwenza ngongole ya munthu wachuma kale. Akudziwana.

  19. This stupid government of DPP just want to blind us. The asset which has been mentioned here is not worth 3 billion. The government think we are stupid, we all know whats going on behind the scene.

  21. With a population of 12-16 Million and that 4b Malawians can afford to contribute @ least 250. Tiyeni tipange MCP style ya card la umembala. We need to get what belongs to us. Inu muli ndi chuma apelekeleni anza nu. We need to get back what belongs to Malawi

  22. But very suprised why not sale those in Lilongwe or movable assets, so that the buyer can easily relocate because Mulli is very strong in the mentioned areas.Open your eyes!

  23. Amalawi tiyeni tisonkhelane pangonopangono mosasankhana mtundu tigule ma asset amenewa. Together we can.

  24. But who is this stupid and mad person who brought in the idea of using taxpayers money? This is the issue at hand now, can Malawians know this dangerous PARTY, MINISTER, GOVERNOR or PRESIDENT?

  25. Let’s hope tomorrow we will not hear that Mulli has bought again the properties on loan!!!!!!

  26. I will believe it when the assets are really sold and Mulli is left with nothing. It doesn’t matter who buys them as long as msb and tax payers get the money back. If you dpp gurus end buying mulli assets, to me it is fine as long as we have got our money back and your pockets burned.

    In any case you dpp thieves will intensify your thefts and get your money back anyway if you buy the mulli assets.

    Now the govt is changing its tune claiming it was injecting liquidity into msb and protecting savers. Why didn’t you say that from start as to the reasons for the promissory note?

    We shouldn’t have reached this point if this stupid govt had listened to our cries. it had taken foreign govts to shout for this corrupt govt to listen, hear and change its stubborn stance. Yet it is exactly the same message Malawians were giving this govt to change its corrupt behavior on the msb saga but didn’t listen.

  27. sale ndi sale basi and it is in the papers. mulli cocks have come to roost! next go to MRA pick on kamoto

  28. Equal treatment for all. way to go. I feel for Mullie though. I dont think he deliberately defaulted. Abapusutsidwa ndi a ndale. Lesson learnt

  29. To sell MSB with the aim of hiding people like muli brothers ltd zidetsa mbiri ya chipani cholamura.

  32. Is this to appease donors?????. Mathanyula and hisgangstergboys make me sick, they think we can not see through this mess

  37. They just want the budget to be passed then trick us with injections . Its a calculated move. They won’t sale them . Just wanted to blindfold us so that they can sell the bank

  39. How come the issue was heard and judged by one judge at Supreme court level! This is holdwinking! Soon the same court will overturn this judgement

  44. It sounds good if it is the way we hearing it now. I couldn’t afford seeing my hardly earned tax being channelled tho mulli in order to rescue his image on the expense of poor people.

  45. This is APM. Next is MCP sell their office if they are not paying city lets. Pliz LL speedup

  47. FIRSTLY WHO AUTHORISED THE WRITE OFF?,SECONDLY WHO IS THE INDEPENDENT VALUER OF THE ASSETS? THIRDLY ARE THE ASSETS SALEABLE?FINALY WE MUST NOT HAVE SALEGATE!

  48. MPAKA PANO AMBIRI OGWIRA NTCHITO KWA MULLI SALIPIDWA, ENA ANAKAWATENGA KUMPOTO KUWANAMIZA ZA NTCHITO KU MJ ANGOVUTIKA , ATSIKANA ENA AYAMBA UHULE KUTI APEZE NDALAMA ZOBWELERA KU NORTH

  52. It makes sense, I think. Otherwise, why should tax payers bail bank, when the borrower has assets which could be sold to pay the debt?

  53. ABWEZE NDALAMAZO, AMAGANIZA KUTI BANK LA MSB NDI LA ALHOMWE, MULI MWATHA MWASALA MUNALI.

  54. They are hoodwinking us so that budget is passed and donors restart supporting Malawi. Za bodza izi

  59. Muli was actively getting loans from MSB with full blessing of Bingu after it was temporary called Mlomwe Saving Bank.

  63. Mulli is not a successful business person but a defaulter of Loans!!!!! other Banks and suppliers be aware!!!! Hopefully these assets were collateral to the loans he got from MSB and no other banks or suppliers have vested financial interests in these assets!!!!!!!

  64. But this explanation does not show if it was procedural for one Supreme Court Judge to determine the case. I can seethe same Supreme Court turning around one day and determining it was not procedural for a single Supreme Court Judge to determine the case. We know for sure that cases at Supreme Court are determined by three or five Judges. Why only one in this instance.

  66. Tinvere zimenezi basi……………………moto kuti buuuuuuuuuuuuuuuuuuu !!!!!!!!!!!!!!!!

  67. I have MK2.3 Billion in hard cash, can i buy the properties????? I want to prove if this is not a move just to hoodwink the donors and deliberations in the August house.

  69. I WILL NEVER TRUST ANYTHING THAT MAXON ‘CHINYENGO’ MBENDERA IS INVOLVED IN. ASIDE MBENDERA THERE IS THUS SO CALLED CHIED JUSTICE NYIRENDA….THESE ARE THE DEVIL’S ADVOCATES. WAIT, NOT LONG FROM NOW YOU WILL HEAR WHO IS TRULY BENEFITTING IN THIS WHOLE BANK SALE. TRUST ME, THE TAXPAYER WILL STILL BE NICKED!

  70. Tsiku la 40 likamakwana zinthu zimakhala conco! Koma ndiye tiyisataditu! Palibe kubwezelana ngongole apa

  73. just imagine mwana wa Namtipwiri wamba ntchito ku data without any post koma DPP sidzathekaso

  74. Koma a boma mukangotinamiza nkulipira mwamseri ngongolezi as if katundu wake wagulitsidwa Malawi will be on fire!!! We are following this issue with an eagle’s eye

  77. They should go deeper and get the whole close to K5bn worth of assets. Who then is going to foot the K1bn shortfall, Peter Mutharika.

    Now, what was that the mafia government was planning to implement? Mavota vota munavotela nazo thieves in politician clothes.

  78. pofunika matumbo peter uja muthane naye ndi amene anali pasogolo kungongoza ndalama kwa muli ali Head of corporate banking Mbuli ya mananger shame pano amuthamangisanso komwe anathawira kuja asova

  79. Way to go on the MSB saga! Go on and sell the properties, no mercy on Mulli! If its indeed true that the “toxic” loans were obtained on behalf on the Mutharikas, let Mulli spill the beans, and he will be of clear conscience!

  80. I am happy, justice must prevail on the matter. Mulli always thinks that he owns Malawi and Malawi is his estate.

  81. Chaka chake ndi chino tifanana. Ngati mumapangila ma kampeni ndalamazo muthandizana kulipila. Mube mavoti mubenso MSB? Tchwelele mwana.

  85. I hope it’s not spinning with the budget session now in session and also as a way of hoodwinking the donors

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