MPs calls MSB sale ‘most heinous corruption scandal’ in Malawi: Govt wants bank handed to Mutharika’s crony

Malawi Congress Party lawmaker Peter Dimba picked the controversial recapitalisation of state-owned Malawi Savings Bank (MSB) to parliament and described it as one of the most heinous corruption scandals, saying government has shielded loan defaulters with tax payers money.

Njobvuyalema:  checklist

Njobvuyalema: MSB robbery byt he Mutharika’s will be stopped

Government has come under intense criticism for injecting K6 billion into MSB to clear off toxic assets instead of simply asking those that owe the bank to repay their loans.

Dimba described the sale and repayment of the loans as “daylight robbery” by government which wants the sale to take place with only one preferred bidder also considered successful in dark rooms.

The lawmaker told parliament that Mulli Brothers Limited and other companies and persons obtained over K6 billion (US$13 million) in loans “to finance” the campaign of the ruling Democratic Progressive Party (DPP), saying government’s decision to take over MSB’s toxic loans is another form of cashgate.

“Mr Speaker, sir, we are experiencing one of the most heinous corruption scandals whose masterminds are the Minister of Finance, the RBM [Reserve Bank of Malawi]governor, some Cabinet ministers and party officials,” said Dimba.

Dimba said his party has evidence indicating that government wants to hand over the bank to FDH Bank, owned by Thom Mpinganjira, whom he described as “Mutharika’s crony, tribesman, DPP campaign financier who sits on the public reforms commission.”

The MP said opposition will not allow “this madness “to continue, saying they will hold budget to ransom until the people’s bank deal is cleared.

He said: “In fact, the MSB corruption scandal will have to be sorted out first before we even begin discussing the budget. Government will have to rescind this theft otherwise the Finance Minister will dance with the budget in this august House.”

MP Joseph Njobvuyalema backed Dimba and pointed out that many lawmakers were opposed to the sale and described it as “a robbery which will be stopped.”

Major on the list of the toxic loans, which government has taken over, is the Mulli Brothers Limited (MBL) loan, which stands at K4 969 043 316.93.

Other defaulters included Varibo Spirits—owned by Duncan Kaonga—at K397 763 522.07, KJ Transways owned by a Mr Mkumba has a K172 536 106.23 loan that has not been serviced, Ganizani Transport owned by Charles Fungula owes the bank K97 908 785.35.

MSB is owed K83 960 954.29 by Maranatha Institute of Education of Ernest Kaonga, K71 220 602.47 from Consolidated Building Contractors owned by Peter Mhone, K69 776 370.81 from CK Construction of Chester Makuwira.

The bank is also failing to collect K68 034 537.28 from Fincoop, K65 910 536.30 from K’s Investments owned by Bintony Kutsaira, K30 717 180.76 from MGI Trading of Macpharen Mpeta Phiri, K27 179 448.51 of Injena Petroleum Limited, K20 722 510.70 of Angel Wings owned by Angel Chaponda Nazombe and K12 782 074.13 of Eranive Trading for Fanny Joshua.

Dimba told parliament that ” the tax payer is paying on behalf of Mulli and other 12 private defaulters as though they were declared bankrupt.”

Following continued concerns  by government benches over issues that Dimba raised, which among others included calling President Mutharika, Finance Minister Goodal Gondwe and Reserve Bank Governor Charles Chuka, as masterminds of the sale of the bank, the Speaker  Richard Msowoya asked Dimba to bring evidence on the allegations to the House on Monday.

 

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Magolizoo
Guest

Ndaweremga ma comment onse,ndipo zikuonetsadi kut anthu a m’malawi ndinu ozindikira ndipo anzeru koma mukafika posakha president mumasakha anthu ot mawa muzawadandaulaso

PA MALAWI
Guest

Don’t sale MSB to the president thats totally mistake and its grabing,if u do so we will buy ADMARC and ESCOM with my fellow malawians.

Abale samalani
Guest

Iwe @ujeni . U are myopic . U think dpp is in control. There is Jehovah sitting in heaven waiting to show dpp that He is and wl ever b in control of malawi. If dpp were in control it wolud have stopped the death of Bingu. Watch thid space.

Othyola Tea ku Thyolo
Guest
Othyola Tea ku Thyolo

It is not a question in the mind of any Malawian with half a brain that the DPP government, with the exception of The VP Saulos Klaus Chilima, is a Kleptocracy.

And they will get away with the sale of MSB like they always do. The allegation that Bingu was killed is a political ploy to distract the public and a disorganized opposition from this issue.

Maliroagonapati
Guest
Yes, they will get away with it, as you put it “as they always do”. But you should remember that their dear leader also stole a lot of money and got away with a lot of things including murder. However, in the end he died like a dog, and his corpse was abandoned by his widow, his brother and everyone else to the extent that the body started decomposing as if it was not the body of the head of state… I see DPP’s victory in the sale of MSB as a pyrrhic victory. The sale of MSB will not… Read more »
your testicles
Guest

nkhani iyi siitha bho. mark my words

patriot
Guest

Ths is just too much fo me to bear,Dpp and ur thieves,ull pay 4 ths 1dy

isaac
Guest

Why paying Mullis credit?Mr president be serious please, we need that money back,apeleke ndalama zake Mulliyo if not the bank should seize his assets finish and claa.

chakwanuleka
Guest

DPP is a party of thieves. We have all the reasons to impeach this president who ascended to power using stolen votes. Now they will keep stealing anything and everything.

Byron
Guest
This is the reason Federalism is important.Malawians will always cry because their voting pattern leaves out genuine leaders and elect thieves.These DPP people have no remorse at all when it comes to plundering government resources and depriving the poor.Now two thieving parties have joined hands to become an alliance of corruption and bring the already poor economy to its knees.Any logic for UDF teaming up with DPP in parliament? I guess three;they have the same origin,practice the same doctrine,and believe in enriching the few.Malawians must guard against this dangerous trend,especially Malawians from center and north because they will be the… Read more »
Dr. Godfrey Ganizani Mvuma
Guest
Dr. Godfrey Ganizani Mvuma

God hear us. Why should such leaders come into these positions that are supposed to safeguard the moral right for Malawi. Please Heavenly Father, come to our rescue again.

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