MPs to refresh debate on Malawi Savings Bank controversial sale

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 .

Chakwantha (left)  with opposiiton leader Lazarus Chakwera
Chakwantha (left) with opposiiton leader Lazarus Chakwera

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

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Wakalamba wafuna
9 years ago

Kugulitsa sikulakwitsa koma kukhulukira ngongole anthu andalama kale ndie vuto. bwanji ndalama zimenezo mukanapereka ma arrears to civil servants

vin mongu
vin mongu
9 years ago

MCP get the debate going but have plan B. We need reversal of actions and clarity of issues surrounding the sale of the bank. Legal affairs be ready to go to court over issues not just empty noise in parliament. Let truth will out!!

Apostle chris mchanda Banda.

To say the truth, to sell this Bank, is the same as to sell malawi. I wonder, if there is no anyother means of surviving, otherthan, letting the bank go. Just imajine, had it been that, it was your personal estate, would you have sold it?. Lets behave, like adults with sober mind.

Apostle chris mchanda Banda.

True that, becouse, not all, who says, Lord, Lord, shall enter Heaven. But, only those who do the will of the Almighty God. That is to say, The Malawi Government, could have, sought any better way, to have the stuggling bank recoverd. Becouse, salling the bank, is just the same as, salling Malawi. Becouse, the said Bank, used to finance, malawi activities, in the name of ; Salaries, fertilizer subsidy, and, or what have you. Now, to have the bank sold out, could mean that, we are stabbing, ourselves on the back. Therefore, we have, to actually RETHINK, of this… Read more »

Thanduxolo
Thanduxolo
9 years ago

Akatumbu amenewa mukawatengetse chakwawoleka!

Dr Mrs Ben Phiri Mutharika
Dr Mrs Ben Phiri Mutharika
9 years ago

DPP is a very insensitive party full of mediocre people and nepotists/tribalists. Why paying loans for Mulli, Makhuwira , Kawonga and others,. Anakakhala kuti ndi John Tembo, Chakwera, Joyce Banda, Kabwila anatenga ngongolezo would the government pay for them? The answer is big NO. This MBS sale is unfair transaction bordering on tribalism, nepotism and uncivilized politics. Komatu Mulungu akuwona zimene zi. Pitara plz wake up from that slumber? Act as a president and not as just a figure head. Mxiii

Achimidzimidzi
Achimidzimidzi
9 years ago

MCP this is the time to demonstrate that you are giants in politics and governance. MSB should not be sold.
Kodi mabank ndi mayesa amafuna chikole akamapereka ngongole and guarantees. Whats the purpose of chikole?

Muwa gugule anthu odya njoka amenewa. Imagine they are
repositioning themselves to replace Angoni Saulosi Chilima.
Mbava, zokha zokha. Anthu osayamika.

Iwe Chakwera ndi Jessie musapange zibwana.
Because you are easily swayed often times.

pamsundu
pamsundu
9 years ago

Malawians are jealousy and stupid why Parliament can not follow jet sale and money realized go!uh!participated in the deal shame!

ujeni
9 years ago

MCP when you bounce back in 2019, get this bank back and prosecute all those involved in this senseless sell.

gwada umvetse
9 years ago

A Chakwera akudziwani kuti mufuna kubela a Malawi ngati momwe Bingu amapangira komamso mutangomvera Chakwerayo mawa TEA mukamwa mutakambirana za mzeru zina osati za BANK. Kodi aphungu sanakana kale kapena mukufuna kuyendera yothyola loko ya malemu? Chonde dziko likati ayi mudzimvera kuwopa kukomoka.

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