FDH offers K4.6bn for Malawi Savings Bank 79% shares
Minister of Finance Economic Planning and Development, Goodall Gondwe, has said the state-owned Malawi Savings Bank (MSB) is not being sold at at K8000 million , saying government is requesting strategic investors to buy a controlling stake in the bank in which the government owns 100 percent of its shares.
Gondwe disclosed to reporters in the capital Lilongwe on Thurday that First Discount House (FDH) had offered K4.9 billion for 79 percent of the bank’s shares.
FDH bank, founded in 2008, is a 100% subsidiary of FDH Financial Holdings Limited (FDHFHL).
The Finance Minister said government had decided to withdraw from being dominant shareholder of the bank to improve the operations of the financial institution.
“The interest is to run the bank in a more efficient way,” said Gondwe. “All the countries out there did the same with their postal savings banks and they are doing fine.”
According to Gondwe, the discussions and proceedings regarding the partnership of the bank is supposed to be through by March 31st, 2015.
“The Registrar has given us up to 31st of this month (March) or else we risk the closure of the bank,” he said.
According to the Reserve Bank of Malawi , the MSB is weighed down by bad loans and it requires a $48.3 million (MWK 23.7 billion) in capital and liquidity by June to satisfy Basel II financial and regulatory requirements or risk being struck off by the central bank.
The sale of the bank has met resistance from lawmakers who successfully pushed a motion in Parliament last month halting the sale to pave the way for investigations on its viability.
The MPs argue that MSB is the only bank that has wide coverage in the country, especially in rural areas where their constituents are located.
Iwe chinthu cha 48 billion asset value chika gulidwe pa mthengo wa ka 4 billion. Za chamba eti. Ngati ili 4 billion osagosungunula ma pension ama staff ukuti igulidwe ndio mwanji pa kuipitisa pa stock exchange kapena pa hidden agenda round 2 ya cashgate mu malawi. Anafe tikudikila ma big man nu muyiyambi cashgate round 2 nafe tidyenawo. I can smell round coming malawi. We shud become instant millionaires plus billi onaires. Mind you akuluakulunu this time ikazango phulika we will expose you big time, sitizakubisaniso we ve learned our lesson from round one. We watching capital hill we ve… Read more »
Nchifukwa chiyani anthu nonse ogwila ntchito mu boma muli ndi dzimimba ngati azimayi oyembekezela pakati?
Pali kanthu apa chenjerani a malawi.
You dont sell company shares on the stock exchange that is in form and shape of MSB.It would not even meet requirements for listing whichever method you use.Recapitalization would be the most stupid thing because the same shareholder would be in control and be part of the dirty politics being undertaken in MSB.Selling a controlling share so that it is in private hands is the way to go.The new buyer will pursue the Mullis to pay back what they owe like hell probably with compounded interest.
WHY ARE THE LOANS OWED BY BIG SHARKS NOT BEING RECOVERED? COME ON MSB, MW!
John Makhawa you are just showing your ignorance and foolishness. What issues are there not to understand? You do not even know that Gondwe himself is a culprit in running down the bank. U don’t vern know that the IMF is pressuring govt to sell the bank bcoz of abuse by politicians. It has nothing to do with economics. Umbuli basi.
Do you remember the sale of MTL? Chikaonda paid less than its worth.
Why not list on MSE so that Malawians are given a chance rather than a family that will be more beneficial registrar is your employee or guarantee them to foreign banks and make politicians be away to run professionally.The problem in Malawi is interference in everything ,with Air Malawi was the same government was owing it alot of money ,then later on they started saying that it was not making profits poor Malawi,next is ESCOM,THE WATERBOARDS,COUNCILS,MINISTRIES THEN ZERO.
Recover the money from defaulters including Muli
Malawians, please understand things first before rushing to critisize. As a professional accountant and from a professional’s point of view i think the RECAPITALISATION of the bank through sale of a controlling stake is a good move. If you carefully look at the bank’s bad debts or defalted loans mostly by high ranked government officials, MP’s and so on, its an indication that politically influencial people are taking advantage of the bank being state owned to defaults their liabilties with the bank as they please. Anthuwa makamaka ma MP amangotenga ngongole osabweza ndiye akuopa kuti ikakhala ya private zizivuta.