No recovery from K6.1bn Malawi Savings Bank toxic loans

Malawi government has not recovered anything from the K6.1 billion that government paid to its then wholly-owned Malawi Saving Bank (MSB) to rescue 13 individuals and private companies that defaulted on their loan payments.

Kutsaira: His company has a debt of K65 million to pay

The collection company say they are facing court injunctions frustrating its work.

Government issues promissory notes of K6.1 billion before selling its wholly owned MSB to Thomas Mpinganjira’s FDH Bank to enable the financial institution knock the toxic loans and tax payers money settle the debts for the individuals and companies who defaulted repaying their loans.

Chairperson of the MSB Debt Collection Company, Chadwick Mphande confirmed    that they have not recovered a single tambala from the defaulters, saying the company was in the process of fighting for the lifting of the injunctions in court.

“As a board we feel frustrated that we have not made as much progress as thought we would,” Mphande said.

“I don’t think the money will be recovered soon,” he added.

Mphande said the recovery was being frustrated by legal challenges, saying there have been injunctions after injunctions on the same matter.

He said the MSB Debt Collection Company is “doing the best” within the law.

MSB failed to recover K6.1 billion from 12 individuals and companies, at the time government was selling off its 80 percent stake, prompting government to bail out the individuals and companies to facilitate the smooth process of selling the bank.

Major on the list of the toxic loans, which government took over, was the MBL Holdings Limited loan which stands at K4.9 billion. Other defaulters are Varibo Spirits owned by Duncan Kaonga at K397 million, KJ Transways owned by a Mr Mkumba who has a K172 million loan that has not been serviced, Ganizani Transport owned by Charles Fungula who owes the bank K97 million.

The bank was also failing to collect K83.9 million from Maranatha Institute of Education owned by Ernest Kaonga, K71 million from Consolidated Building Contractors owned by Peter Mhone, K69.8 million from CK Construction of Chester Makuwira, K65.9 million from a firm owned by Bintony Kutsaira, K30.7 million from MGI Trading of Macpharen Mpeta Phiri, K27 million of Injena Petroleum Limited, K20.7 million of Angel Wings owned by Angel Chaponda Nazombe and K12.7 million of Eranive Trading for Fanny Joshua.

Apart from Mphande MSB Debt Collection Compnay has  lawyers Modecai Msiska, Khuze Kapeta, chartered accountant Nkodnola Uka and Chifundo Asedi.

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Alhomwe Alhomwe
Guest

These thieving thugs have overstayed their welcome. I am a true Lhomwe but very ashamed of this conduct.

Mzika
Guest

Amalawi timayiwara nsanga MSB was sold in order to cover up these stupid loans that were obtained by the DPP guys lead by Mulli who was used by Bingu then like a condom….. now Mulii has learnt a lesson no wonder he is quite….

sibo
Guest

The debts will not be paid. What a big mistake the country made to vote DPP back to power. Most of this cash went to fund the party and it is naïve to expect DPP to support recovery of these debts. DPP ndi chipani cha anthu akuba. A Malawi mudzamva liti?

namarika
Guest

DPP ndi chipani cha anthu akuba, chipani chochitisa manyazi, I’m a lomwe but not proud to associate myself with this party –eesh it’s too much zikumakhala ngati kuti alomwe tonse ndi akuba…………..how will Malawi be like if these thugs win again in 2019, ndikuopa, they don’t have the welfare of the country at heart

youna
Guest

Koma mimba ya a Kutsaila ndi moo! kkkkk

CHAMBU NUJUWI
Guest

THE MARE FACT THAT KHUZE KAPETA IS IN THIS TEAM, I DOUBT IF EVER THESE MONEYS WILL BE RECOVERED

chimanga
Guest

Destruction Perpetuation Party (DPP). Kwawo ndi kuononga basi. They knew this could not be recovered. Shame on you. Share the loot bu one day you will answer before God. Wambeu ndani?

Thyolo Thava
Guest

Mbava za DPP

justin phakamisa
Guest

Mchifukwa chake eni injena afumu aja ali busy fighting Lucius Banda khani yake akufuna chitetezo eti??????bwezani ngongole amfumu

Dr Akweni Mulanje West
Guest
Dr Akweni Mulanje West

Zofuna. Protecting and enriching DPP thugs. Masende anu nonse a DPP

wpDiscuz

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