Government is expected to be taken to task over the controversial sale of state-owned Malawi Savings Bank (MSB) with the Legal Affairs Committee of Parliament has saying it report to the House will spell out its resolution .
Dowa West Member of Parliament (MP) Alexander Kusamba-Dzonzi (Malawi Congress Party – MCP) in the previous sitting of parliament moved a private member’s motion blocking the sale process; the matter was referred to Legal Affairs Committee.
Chairperson of the committee, Peter Chankhwatha said they have been meeting different stakeholders on different legal issues including the MSB sale.
“We are taking to Parliament different issues including the issue that you already know is in the public domain in the issue to do with the sale of the Malawi Savings Bank” Chakwantha said.
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.
The government’s divestiture agency has since suspended the process following a court injunction.
Government asked the Reserve Bank of Malawi (RBM) to issue K6 billion promissory notes to take the toxic loans off the MSB books. The government has committed the money to repay loans that 13 private sector players took from the MSB and failed to repay.
The individuals are mostly known supporters and financiers of the ruling Democratic Progressive Party (DPP) who include to Mulli Brothers Limited (MBL)—whose managing director, Leston Mulli, is a known a close ally of former president the late Bingu wa Mutharika, the elder brother to the current leader, Peter Mutharika. Roughly 83 percent (K4.9 billion) has gone to clear Mulli loans.
Besides MSB sale, the Legal Affairs Committee has also said that it will present its recommendations on other issues