Mpinganjira denies FDH takeover of Malawi Savings Bank: Activists calls for sale halt

FDH Financial Holdings Limited chief executive officer Thom Mpinganjira has fended off talk that the company has completed the process of buying wholly State-owned Malawi Savings Bank (MSB).

Mpinganjira said on Thursday that the process is continuing.

He rejected reports which went viral on news websites and social media on Wednesday that government secretly proceeded to sale the bank to the only bidder FDH, a move which parliamentarians described as an “epic swindle.”

“That is not true,” said Mpinganjira on Capital FM Radio.

“I am the one who is going to sign the documents, so I have not signed yet,” he added.

Mpinganjira, however, expressed optimism FDH will take over MSB in not too distant future.

FDH Bank has offered to buy MSB for K4.9 billion (US$10.9 million), which is 75 percent of the government’s shares.

Public outcry and parliament forced President Peter Mutharika to suspend the sale of MSB which had reportedly been weighed down by bad loans.

Human rights defender and social commentator Billy Mayaya and Forum for National Development Fyson Chodzi on Wednesday engaged members of the media, asking government not to sale MSB.

Mayaya said it is “unfair to Malawians” to go ahead in selling the bank while the consultations are still going on.

“We don’t see the reason of selling the bank when it is making profits,”  he said.

Reports indicate MSB posted a pre-tax profit of K2.5 billion (US$6 million) between January and May 2015.

MSB has posted a 221 percent increase compared to the same period last year when profit before tax was K773 million (US$2 million).

The bank’s unaudited management accounts ending May 31 2015, show that MSB has made a consolidated pre-tax profit of K2.5 billion against a budget of K1.1 billion (US$2.4 million), beating the target by 126 percent, The Nation reported on Wednesday July 1, 2015

The MSB management accounts report also show that MSB Forex Bureau, a wholly owned subsidiary of the bank, made a pre-tax profit of K186.4 million (US$414 222) against a budgeted pre-tax profit of K228.4 million (US$507 556).

Citing a bank source, the paper said in the past five years the bank only made a loss of K1.9 billion in 2014.

MSB has 74 points of representation across the country with a workforce of about 600.–Additional reporting by Green Muheya. Nyasa Times

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