The cash-strapped Malawi government—which is struggling to even buy the most basic of drugs for its people—has committed K6 billion taxpayers’ money to repay loans that 13 private sector players took from the now ‘for sale’ Malawi Savings Bank (MSB) and failed to repay, it has been reported.
Of the total giveaway, roughly 83 percent (K4.9 billion) has gone to Mulli Brothers Limited (MBL)—whose managing director, Leston Mulli, is a known supporter of the ruling Democratic Progressive Party (DPP) and a close ally of former president the late Bingu wa Mutharika, the elder brother to the current leader, Peter Mutharika, The Nation reported
The Nyasa Times reported that government’s was planning to write off debts of DPP financiers when Treasury instructed Reserve Bank of Malawi to issue the K6 billion promissory notes to take toxic assets off MSB books
Other defaulters included Varibo Spirits—owned by Duncan Kaonga—at K397 763 522.07, KJ Transways owned by a Mr Mkumba has a K172 536 106.23 loan that has not been serviced, Ganizani Transport owned by Charles Fungula owes the bank K97 908 785.35.
The bank was also failing to collect K83 960 954.29 from Maranatha Institute of Education owned by Ernest Kaonga, K71 220 602.47 from Consolidated Building Contractors owned by Peter Mhone, K69 776 370.81 from CK Construction of Chester Makuwira.
The bank is also failing to collect K68 034 537.28 from Fincoop, K65 910 536.30 from K’s Investments owned by Bintony Kutsaira, K30 717 180.76 from MGI Trading of Macpharen Mpeta Phiri, K27 179 448.51 of Injena Petroleum Limited, K20 722 510.70 of Angel Wings owned by Angel Chaponda Nazombe and K12 782 074.13 of Eranive Trading for Fanny Joshua.
Treasury spokesperson Nations Msowoya said government hastaken a decision “to deal with the toxic loans separately.”
But Consumers Association of Malawi (Cama) and governance body Catholic Commission for Justice and Peace (CCJP) have condemned government for forcing taxpayers to pay for the loans.