MCP seeks answers on  Malawi Savings Bank sale proceeds

A senior opposition Malawi Congress Party (MCP) legislator wants to move parliament to demand from government a full report on the controversial sale of Malawi Savings Bank (MSB) to FDH Bank by demanding to know the whereabouts of K9 billion proceeds from the transaction and how the toxic assets were dealt with.

Lilongwe Mpenu constituency MP Eisenhower Mkaka, in a private member’s motion, also tells the government to suspend the formation and operations of Malawi Agriculture and Investment Corporation (MAIC) until the issue of MSB is resolved.

“…since 3rd July, 2016 when the Malawi Savings Bank (MSB) was hurriedly sold, [we] have not received any official report on the proceeds of the sale of MSB and the attendant toxic assets,” says the notice of the motion in part.

Government sold MSB in 2015 after it failed to meet regulatory requirements to capitalise the entity as recommended by Reserve Bank of Malawi.

MCP allege  the ruling Democratic Progressive Party (DPP) elite colluded to benefit from the sale and that  some people within the ruling elite failed to repay loans to MSB, resulting in its failure to meet requirements..

Former Finance minister Goodall Gondwe said the money realized during the sale of the MSB to FDH Bank is lying safely and the government is still thinking of what to do with the money.

The former Treasury Czar is also 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 no single tambala has been collected.

MCP  legislator said  Malawians don’t even know where the proceeds of the sale amounting to K9.9 billion are being kept and for what.