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.

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.

Follow and Subscribe Nyasa TV :