Reserve Bank of Malawi rejects Mpatsa Holdings 49% share acquisition in Mybucks

Reserve Bank of Malawi (RBM) has rejected Mpatsa Holding Limited a 49 per cent acquisition in South Africa’s Mybucks banking corporations.

Jimmy Koreia Mpatsa, owner of Mpatsa Holdings, a local investment company.

A statement from Mpatsa Holdings management says RBM has not approved the acquisition on the grounds that Mpatsa assets are in the form of fixed assets which may not be liquidated quickly should there be need in the future to provide additional support in the bank.

But Mpatsa Holdings says surprisingly this is not a criteria for one to invest in a financial institution and has never been to any of the existing bank’s shareholders.

“We further pointed out should such a situation arise, there are several options available to us such as dilution of shareholding, liquidation of assets, obtain financing etc but all our pleas fell on deaf ears,” says the statement.

Mpatsa says the rejection of the acquisition is not only a blow to the country’s economy but a contradiction to the new administration of Tonse alliance  of encouraging local  empowerment and job creation.

MyBucks S.A. is a FinTech company domiciled in Luxembourg that delivers financial services through technology. MyBucks operates in six African countries through its brands GetBucks, GetSure, MBC and Opportunity Bank.

Through its investment arm, Mpatsa Holdings Limited, owned by Jimmy Koreia Mpatsa, has interests in several sectors of the country’s economy, namely agriculture, mining, hospitality, real estate, pharmaceuticals, distribution and marketing.

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NEW MALAWI`
NEW MALAWI`
7 months ago

mhhh

Mwini muzi
Mwini muzi
7 months ago

Any investment move becomes a well calculated move. Iam of the view that the Reserve Bank should have had a discussion around the act and come with an avenue to approve the acquisition without violating the act, very possible. This is what Chilima is preaching; mindset change.

Joshua
Joshua
7 months ago
Reply to  Mwini muzi

Mindset change indeed. Malawi is one of the poorest countries in the world. Its because we stick to world wide protocols that do not help us.

Joshua
Joshua
7 months ago

Mindset change. Business leaders take risks to do business. This is what the Hon. Chilima asks Malawians to do. Take risks to do business. We have to think big. He asked whether you can buy Ronaldo at $30,000,000 and yet this is what World Bank gives Malawi Government. We need to borrow billions of dollars to improve ourselves and the country. Think big. This is where Mpatsa Holdings is coming from. Thinking big. And Reserve Bank should encourage such business leaders. Not putting spanners in between. RBM should also take risks on matters as these. Some of us, small business… Read more »

Namukhoviwa
Namukhoviwa
7 months ago
Reply to  Joshua

Please read the Third Basel Accord which came about after the 2007-08 global financial crash, this is a world wide practice. None is out to punish anybody but to protect you and me

Ngombwax
Ngombwax
7 months ago
Reply to  Namukhoviwa

Exactly. I suspect this dude had made underhand deals with the previous regime, but things went haywire when the regime lost power before the deal was sealed. Now the new regime has decided to go by the book and the dude is crying foul.

The way Thom Mpinganjira acquired MSB was really suspicious, and might have paved way for similar-minded crooks to attempt to acquire banks corruptly.

Joshua
Joshua
7 months ago
Reply to  Namukhoviwa

Third Basel Accord of 2007/8….my foot. Global financial crash is inevitable. It will happen again no matter what. RSA was recently placed in a junk status category. As poor nation we should not be afraid to take financial risks because of TBA. It is high time RBM changed its mindset. Mindset should happen in all spheres of the economy. We should move forward.
I just hope this acquisition will not end up given to the so called Malawians of Indian origin just because they have liquid assets.

Mwini muzi
Mwini muzi
7 months ago
Reply to  Joshua

Agree

Rocky Dada
Rocky Dada
7 months ago
Reply to  Joshua

I hope Reserve Bank is acting as an independent regulator of financial institutions and independently reviewed this transactions in accordance with required standards and procedures. If financial rules of acquisition havent been satisfied, then its right and prudent to fail the deal. And the reason of failure should be clearly made available to the host/acquirer. And possibly allowed to launch another bid. And this should be the case for all mergers and acquistions. If the financial fair play rules were disregarded during the takeover of MSB bank by FDH then is it allowed to apply the rules in retropsect? If… Read more »

ZDB
ZDB
7 months ago

The real reason is that he is a Southerner and this govt of Tonse alliance has waged war on Southerners…the rich southerners like Mpatsa, Mulli and Mpinganjira and does not see them as Malawians who should participate in developing this country…salowa nyau kapena ku mvina gule

Fake Petros
Fake Petros
7 months ago
Reply to  ZDB

Vuto ndi lokuti DPP ili m’boma imakomdela akumwela ndi kupatsana ma contract dubiously. Ndiye mukuganiza kuti anzanu akuterenso. The problem of being a thief.

CESSPOOL
CESSPOOL
7 months ago
Reply to  ZDB

Southerner or not the Mpinganjira bundled in the same basket with Mulli and Mpatsa that’s not a fair presentation of nepotism to the people in the South. Mpinganjira is fighting his own struggles that are scarcely political he baked the bread when the Malawi was gasping for breath it’s time for him to munch or crunch it. Some Malawi billionaires are rich on paper. The best advisor on matters of finance is the Central Bank so when the central custodian of policy slips just to appease a certain chunk of illiterate rich Malawi is heading in the wrong direction

Critical thinking
Critical thinking
7 months ago

There is no issue here. Reserve Bank is right in following procedure and it’s really embarrassing that he is trying to make this a political issue.

The Knight Templar
The Knight Templar
7 months ago

RBM is not following any procedure here. There are some tricky issues though plus a political element to it.

Mwatha
Mwatha
7 months ago

This happens when you are a thieving perpetual liar and you believe in your lies. The dude does not have the money to acquire such shareholding……..period!!!! He is just trying to buy public sympathy by mudslinging the Reserve Bank which is just following procedure. He should know the difference between reality and a wishlist. Otherwise all of us would have been billionaires

Chalo
7 months ago

Assets for Mpatsa Holdings Limited are not liquid according the Financial Services Act 2018.
The bank needs to liquid in order to attend to the needs of its customers all the time.

ZDB
ZDB
7 months ago
Reply to  Chalo

Whose assets are liquid then…betrays lack of knowledge in investment matters. You can’t have all your money in cash. What you need to have is assets that can be used as a collateral for loan.

Mwatha
Mwatha
7 months ago

Zonamiza mabulutu anzanu izi! You do not meet the requirements basi!

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