Malawi Savings Bank sale suspended
The controversial sale of Malawi Savings Bank (MSB) has been suspended following a court order stopping the transaction, the Public Private Partnership Commission (PPPC) has confirmed.
Ministry of Finance, Economic Planning and Development, through the Public Private Partnership Commission (PPPC), was set to conclude sale of between 51 and 75 percent shareholding in the bank, following failure to recapitalise it and adhere to regulations requirements by Reserve Bank of Malawi (RBM).
PPPC announced the designation of FDH Financial Holdings Limited, the parent company of FDH Bank, as the preferred bidder to invest in MSB and is offering K4.9 billion to buy 75 percent stake.
But MSB employees rushed to court to prevent the transaction being completed.
PPPC chief executive officer, Jimmy Lipunga, said the commission could not proceed on the matter with a court order in force.
“That order prevented us from proceeding to the next step,” said Lipunga.
Lipunga said the commission was worried with the injunction as it will delay the process to re-capitalise the bank.
“The court order stops us from concluding the matter and it will have implications on progress and targets on the transaction,” said Lipunga as quoted in the Daily Times.
He said the stalemate is also making the process expensive as a lot more time would have to be used in the transaction.
“And the longer it would take, the more costly it would be on our side,” said Lipunga.
MSB workers want the court to interpret if the sale of the bank is in line with Public finance management act and Public Partnership Act (PPA).
The members of staff are worried that should the sale of the bank be illegal it will affect the contracts of the workers.
Minister of Finance is the first respondent, Public Private Partnership is the second respondent while Malawi Savings Bank is the third respondent.
Critics have argued that proposed K4.49 billion price offered as an “epic swindle.”
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They are just after lobeying gvt resources
The real issue is someone wants the share of the money.The same 4 billion is what Mulli is owing. why dont the leadership squeeze Mulli to pay the 4 billion and make plans to help the bank start making profit.Since 1994 we have been breaking the country one statutory corporation per government. When will this stop?
We have well qualified people in the government but their contribution is ignored. it is possible to change any organisation which is making profit to start making profit
zz junior, where are you from? we have what we call laws and laws are bigger than investors or employers. that is what is at play here and the bigger one won. so goodall mutu wakula, this bank will not be sold at all so you better find solutions quick and you have the budget session to sell your ideas to the same MPs umawakulira mtima. democracy sometimes works.
wakhaula Jimmy Lipunga. Ubwenza unadya zija uwona.
People can talk this and that. Use technical jargon and whatever. But the plain truth is that PRIVATIZATION HAS FAILED MALAWI. I don’t need to list names of companies which have vanished under the so called privatization. What we need, in Malawi, is a rigorous, consistent monitoring and evaluation of systems performance. Did you know that Ethiopian Airlines is fully owned by government. Who said government entities don’t perform? It’s all about discipline.
Anthu okuba, Lipunga privatisation boss, waba ma company and give them to the Aid of the leaders in Malawi pretending to sale and never pay anything for any companies, they just draw up a contract and hide it in the draws, bob is you uncle, nobody ask any questions, no wonder Malawi is so poor.
DON’T JUST SUSPEND IT, jUST ABANDON THE WHOLE IDEA. GOVERNMENT MUST CAPITALISE IT.
Wait a minute! look at the PPPC boss closely, you will notice that he is the same K. Lipenga it’s just a twist of letters (to Lipunga) on the name and a slight face surgery….. kkkkkkkkkk…..!!!!!
An employee stopping the employer(Investor) from selling his assets. Only in Malawi
WAKHAULA LIPUNGA MBAVA YOPEMPHERA