Opposition Malawi Congress Party (MCP) has claimed that Minister of Finance, Economic Planning and Development, Goodall Gondwe and the ruling Democratic Progressive Party (DPP) elite colluded to benefit from the controversial sale of Malawi Savings Bank (MSB) in 2015 to FDH Bank.
MCP spokesperson on Finance Alexander Kusamba Dzonzi responding to the Mid-year Budget Statement by Minister of Finance, said Malawians deserve to know the whereabouts of about K10 billion realised from the State-owned bank sale and how much has been recovered from K6.1 billion that companies owed the bank before the sale.
Dzonzi said some influential people within the DPP and its agents failed to service their loans to MSB and government paid through taxpayers’ money to clear toxic assets for private individuals and companies.
Capital Hill committed taxpayers’ money to repay loans that 13 private sector players took from the MSB and failed to repay.
Of the total giveaway, roughly 83 percent (K4.9 billion) was for Mulli Brothers Limited (MBL)—whose managing director, Leston Mulli, is a known operative of DPP .
“The ministers of Justice and Finance are on record having told the National Assembly that the MSB toxic loans the government settled on behalf of the DPP elites will be collected, but up to now, no single tambala has been collected,” Kusamba Dzonzi told Parliament on Tuesday.
“Malawians today don’t even know where the proceeds of the sale amounting to K9.9 billion are being kept and for what,” he added.
The MCP spokesman on finance demanded the ministers of Finance and Justice to “come out clearly and tell Malawians where there money is being kept.”
He continued: “Malawians must know that has these monies been available, the University if Malawi would have subsidised the school fees for our children to continue their studies uninterrupted.”
Kusamba Dzonzi said Gondwe must account for what happened with billions from the MSB sale as, last time, he told the National Assembly that the government was contemplating on what to do with the money.
Gondwe is expected to wind up debate on his statement on Friday and is expected to respond.
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