MCP MP to wind up debate on Malawi Savings Bank toxic loans motion

Malawi Congress Party (MCP) Lilongwe Mpenu legislator Eisenhower Mkaka is scheduled to wind up his motion this Thursday asking  Ministry of Finance to explain to Parliament the disposal of the then wholly State-owned Malawi Savings Bank (MSB) and progress towards recovering K6 billion toxic loans extended to some individuals and companies.

Mkaka moved the motion last year demanding Minister of Finance, Economic Planning and Development to present in Parliament a report that details the sale of the bank and the recovery of the K6 billion toxic loans.

According to a Parliament’s Order Paper   which lists all business before the House, Mkaka will wind up his motion this Thursday which also touches on Malawi Agriculture and Investment Corporation (Maic), the bank government established using the proceeds from MSB.

Mkaka wants the Minister of Finance to also give a report on the establishment of Maic which is headed by chief executive officer Taziona Chaponda and its operations.

In November 2018, President Peter Mutharika launched Maic, the bank that was established by Ministry of Finance, Economic Planning and Development in conjunction with CDH Investment Bank at the value of K35 billion.

In 2016, government initiated the sale of State shareholding in two commercial banks, MSB and Indebank after failing to recapitalise them.

Further, government issued promissory notes worth K6 billion to bail out about 12 individuals and companies that failed to pay back loans to MSB and established a loan recovery vehicle to recover the toxic loans.

However, the money is yet to be recovered due to pending legal battles.