Government’s decision to dispose of state controlled Malawi Savings Bank (MSB) has shown that “contact and dialogue is not part of Democratic Progressive Party (DPP) DNA,” former ruling People’s Party (PP) publicist Kenneth Msonda has said.
Government is selling the commercial bank which is said to be weighed down by loans and is presently struggling to keep grip. According to the Ministry of Finance, MSB requires a US$48.3 million (MWK 23.7 billion) in capital and liquidity by June to satisfy Basel II financial and regulatory requirements or risk being struck off by Reserve Bank of Malawi.
But Msonda alleged that the sale of the bank is being shrouded by a lot of enigmatic strings because “DPP top officials got huge loans from MSB and they are not servicing” them.
“That is why they want to dispose of the bank to write off these loans,” said Msonda.
He blamed the DPP for rendering a deaf ear to the opposition as regards the sale of the bank.
“DPP should tread carefully before disposing of the bank because this is an institution that has been helping Malawians across the country economically.”
He said it was unfortunate that DPP was operating in the bank’s operations.
“When we were in government they [MSB] made a number of proposals to enable them work effectively and one of the proposals was that there shouldn’t political interference in the bank’s operations,” he said.
He called reports that the idea to sell MSB is PP brainchild as “DPP propaganda.”
He added: “We never harboured intentions to sell of MSB. Our policy was, in fact, to depoliticize MSB and that all politicians who owed the bank should service their loans so that MSB could be on its feet again.”
Finance Minister Goodall Gondwe trashed Msonda’s remarks that government was disposing of MSB because some of its politburo “were failing to service huge loans they owe the bank.” Gondwe said there was nothing like shielding anyone.
However, Gondwe, admitted there were some people owing the bank an estimate of K5 billion accrued for some years, and that “MSB hasn’t been able to claim the money.”
Gondwe revealed that a private legal firm was being hired, on behalf of government, to recover the loans.Follow and Subscribe Nyasa TV :