MCP insists Malawi Savings Bank sale is in bad faith

The main opposition Malawi Congress Party(MCP) has raised its eye-brows over the fast-tracking of activities involving the state-owned Malawi Savings Bank (MSB).

Chiphiko: Collect debts first

Chiphiko: Collect debts first

Government is seeking financial strategic partners to finance MSB which is struggling to meet Basel II requirement and the bank needs a financial injection of K23 billion.

The Public Private Partnership Commission (PPPC) recently unveiled FDH Financial Holdings Limited, owners of FDH Bank, as the only bidder to become the strategic partner after offering K4.9 billion for the 75 percent of the bank’s shares.

MCP spokesperson Dr Jessie Kabwira told Nyasa Times that her party it is disheartened that government is busy justifying the sale of the bank despite various professional advise against it, saying the whole process smacks of “dark corner deals.”

“What we have is a  government which do not want to listen to  any advise from the other side,” said Kabwira.

Kabwira said the sale was already concluded in “dark corners” and the rest of the process is to hoodwink the public.

Another MCP lawmaker and chair of the Parliamentary Committee on Budget and Finance  Chairperson Rino Chiphiko in a dossier to Minister of Finance recently demanded that Government should collect all the MSB debts before disposing the Bank.

But recent reports indicates government has asked the Reserve Bank of Malawi (RBM) to issue K6 billion promissory notes to take the toxic loans off the MSB books.

According to a letter reference number ST/3/10 dated April 20 2015, Secretary to the Treasury Ronald Mangani instructed RBM Governor Charles Chuka to issue the promissory note to MSB to clear the toxic assets.

Mangani said the maturity of the promissory notes have been spread from 2016 to 2019 and will be maturing at K759 million every quarter.
Critics have argued that proposed K4.49 billion price offered by FDH as an “epic swindle”.

Toxi Asset- Definition

Assets that have significantly declined in value, which no one will no longer buy.

 

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
ulendowu ndi watonse
Guest

kodi a kapito abwana a consumer mukuti bwanji nkhani yogulitsa msb bank timadalila inutu ife chitanipo kanthu ndithu.

Mmalawi weniweni
Guest

MSB is a nation asset. Why are allowing these crooks to steal from us the little that z remaining. Let the gvt recapitalise the bank and sell it through stock exchange.

Mwamadi
Guest

Jessie, do not just talk. Can you take action? Organise a march to show your displeasure. It should not just be civil society. Political parties should also organize a march.

matako
Guest

What is wrong with Malawians? How long will docility and meekness continue in our society. Politicians are stealing from left and center and we sit phwii and do nothing. What will it take for us to say enough is enough. What Malawi needs is a revolution. we need a black spring to get read of these corrupt politicians.

Warissolution
Guest

PROMISORY NOTES PURELY THEFTY AND AGREED BY THOM, LIPUNGA AND CHUKA UNDER THE INTRUCTIONS OF ABOVE , KUBA KWEANIKWENI AGALU

paul
Guest

…trying to cone ppo yet again.
DPP into cashgate MKII…collect all debts owed to the bank first then sell. But we all know who the debtors are and they are also the new proposed buyers! Ripping off taxpayers in broad daylight! why not just torch it!

nachipanti
Guest

This will just cripple the economy even further. Issuing promissory notes wont solve anything. Malawi should not suffer because of few people’s foolishness.

chitima
Guest

mbava inu a DPP mukuwonjeza tionana soon soon ! a Malawitu amadziwa ku-voter ohoo.

Mwendanato
Guest

Koma alomwewa ndiye atipezelera, kodi ma human rights bodieswa kodi imemenyi silomwephobia yofuna kuigubila ? Ian Bonongwe kdoi simulomwe amene anthu ena ankadandaula chaka chatha kuti wazaza alomwe okhaokha mumipando yonona ndiye pano ayiwomola bankiyi ndiyepano adyenso kachiwiri ali pompanja bonongweyi atadya zache mwanamveka ndi mulli. kodi amalawife tidagontha ndi kugotomala kotani. I TOTALLY AGREE WITH MCP VIEWS 100% LETS WAKE UP AND CHALLENGE THESE LOMWES

Kandapako
Guest

Zoona ngongole ya Mulli tibweze ndife a Malawi? Why should government bail out Mulli? These promisory notes will be honoured using our taxes….effectively bailing out Mulli.

wpDiscuz

More From Nyasatimes