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

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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kapoli
Guest

ndkazule chnangwa changa ndphke.madzulo ndkabweze k70 ya nima.

pressure
Guest

Kani wolemeranso amakhala ndi ngongole. Ine ndinkangoti ndine ndekha

Ayisova
Guest

Mpakana chi MK4.97 BILLION. Onse anangoti kkkkkkkkkk

Kaphulika
Guest

Musiyireni mwana katundu wake. Inuyo mukagulitsa mzanu atsala ndi chani?

Pichi
Guest

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.

Shadrick Gologolo
Guest

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!

Shadrick Gologolo
Guest

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!

bernard
Guest

When god says no who can say yes !!!”

Ineyo ndi Ineyo
Guest

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.

Teacher
Guest

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

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