Joyce Banda trashes Finance Bank claims in Mail and Guardian

Malawi’s former President, Joyce Banda, has denied allegations by the Mail &Guardian(January 23, 2015) of South Africa that she issued an operating license to Dr. Rajan Mahtani, Chairman of Finance Bank, for the re-opening of Finance Bank in Malawi.

Banda: Mail & Guardian should have endeavoured to seek an official comment from the Reserve Bank of Malawi

Banda: Mail & Guardian should have endeavoured to seek an official comment from the Reserve Bank of MalawiREP

The report alleges the former Head of State received millions of US dollars from Dr. Mahtani to facilitate the reissuance of a banking licence to Finance Bank.

The office of the former President has described the report as “shockingly flimsy, irresponsible and deserving no merit at all”.

Banda’s office wonders why a “reputable media house like the Mail & Guardian” would stoop so low to even peddle falsehood and deceit, when the truth is just “a phone call away”.

According to a statement released by Banda’s office on Monday, January 26, 2015, “it is normal practice” for any Head of State to receive or to take courtesy calls of many people including investors.

“The President would then direct such investors to relevant authorities,” reads the statement in part.

“Indeed, Dr. Mahtani met Her Excellency Dr. Joyce Banda when she was President of the Republic of Malawi. Dr. Mahtani was accompanied by his lawyers and senior members of Finance Bank management.  Their mission was to negotiate the reopening of Finance Bank in Malawi.

“The former President appreciated their interest to reinvest in Malawi but the responsibility to issue banking licences falls in the hands of the Reserve Bank of Malawi, as a regulatory authority for the registration of commercial banks,” continues the statement.

According to Banda’s office, the former president referred the matter to the Reserve Bank of Malawi to conduct of a ‘due-diligence’ exercise to ascertain whether or not Finance Bank may be allowed to return to Malawi.

The former Head of State was not informed of the final outcome of that ‘due-diligence’ exercise until she left office in May 2014, according to the statement.

The statement emphasizes that under the law, former President Banda had no authority to authorize the reopening of Finance Bank, let alone any bank, because that did not fall under her President’s jurisdiction.

“The former President is therefore utterly dismayed that she should be blamed for the re-opening of Finance Bank in Malawi eight months into the DPP administration under His Excellency President Peter Mutharika.

“The Mail & Guardian should have endeavoured to seek an official comment from the Reserve Bank of Malawi to ascertain what role former President Banda played in the reissuance of a license to Dr. Mahtani to reopen his Finance Bank in Malawi. It is blatant abuse of media freedom to make unfounded and unverified allegations against the former President,” reads the statement Nyasa Times has sourced.

Zambian-based Dr. Mahtani operated Finance Bank of Malawi for many years, across the regimes of United Democratic Front (UDF), under Bakili Muluzi and the Democratic Progressive Party (DPP) under the late President Bingu wa Mutharika.

It was under Bingu wa Mutharika’s regime that  Finance Bank was closed  after it allegedly  flouted laws under the Banking Act.

Finance Bank of Malawi was set for re-opening in the Capital City, Lilongwe, on Monday, January26, 2015 after it was stripped of its licence in 2005 following allegations of money laundering activities and alleged use of ghost accounts.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
phodogoma
Guest
A coward who runs away from her home before her cashgate issues are tabled in court of law. Pray hard that no cashgate offender do not mention you as a witness. possibly Kasambala should not mention your name as his witness. Otherwise the government of Malawi is ready to make use of ‘being the member of INTERPOL’. The same American police will take you to Malawi by neck. The world is very interesting. INTERPOL mebers in USA are waiting the day when they will come to Malawi with a cashgate offender ( chief for that matter who knows the guy… Read more »
Msangaambe Phiri
Guest

This higher post of president requires someone to consult widely before taking a decision.Bcz it looks like most Malawian presidents lacks consultation bcz they regard themselves as very high & powerful to take any decision on anything even if it falls to a certain government body.Hence puting themselves in hot soup at the end of the journey.

J.Banda
Guest

Point taken,Koma kumwamba kukakhala koka,koka zonsezi ndi inu anthu andale kapena mwina tikanasankha mbusa ?Zokamba bwenzi zikusowa? Lero zaonjeza mpaka kumatukana chonchi ngati sife a Malawi hiiiii dziko lija !!! ?

Cimenti
Guest

Mukuonekera nga’mbatu Amai. Anakati anene a boma munakati ndi ndale koma anena akunja

PUTEN
Guest

Siyani Zokoka za amayi

Pepani ndi kuti siyani kuwakoka amayi

Ine Gwegwe ndi nawakwela amayi

Inuso tiyeni achinyamata modzimodzi muwakweletso amayi

Ngongoliwa
Guest

KU RSB KULI KATANGALE OSATI MASEWERA AYI AMANGWETU. TIRI PAMENETIRIPA CHIFUKWA CHA AGARU A KU RSB. PANO ALI BIZE KUULUTSA MAFIGARA ONAMA A MSB KUTI IKUFUNIKA K23BN KUTI IDZUKENSO PAMENE CHILUNGAMO CHAKE NDI K3.6BN YOMWE IKUFUNIKA. KOMA KUMENE AKUITENGA K23BN ALIYENSE SAKUMVETSA. RSB WANTS TO SCARE GOVT AND CUSTOMERS SO THAT GOVT SHOULD SELL THIS NATIONAL ASSET TO INDIANS KUTI WINA ALEMERELEPO. WE KNOW WHAT IS HAPPENNING OUTTHERE!!!!!!!!!!!!!!!!!!!!!!. CHONDE INU A GOODALL MUSALORE ZIMENEZI.

Chibanja tv
Guest

Inu kodi mukukhala ngati agonthi bwanji? simukudziwa kuti abiti ndi munthu okuba bad, chachilendo chomwe mukufuna kumva ndi chani? Ife zisatikhuze ngati mukufuna public sympathy izo ndizanu koma apa pali nkhani apa!

Arthur G.M. Mtambo
Guest

SEEINGG SOMEBODY ON DEVELOPMENT AND BUSINESS MATTERS IS NOT BARRIED,BUT IT IS UP TO THE PERSON TO MEASURE THE SITUATION.

YAMAWEYA INJILE
Guest

malawi

wanangwa
Guest

JB shud not refute allegations. Why did JB allow Bharat to meet her? If she was smart she shud have refused by giving an excuse not to meet him. For a bank to be closed, it means it has done something very bad. Why did RESERVE BANK allow these thieves back?
Malawians and all companies of goodwill should shun this bank. No one shud open an account with it. This Indian shud confine his operation to Zambia. Shame on RBM.

Think Tank
Guest

stop being too political. You should now be ashamed. Read the latest on this. Its your Gondwe who issued the licence. I always say nowadays dpp is peddling every lie they want to disgrace opponents. I

More From Nyasatimes