UK tells Malawi to ensure MSB loan defaulters are ‘accountable’

British High Commissioner Michael Nevin has urged the Malawi to ensure that those who obtained loans from the State-owned commercial bank, Malawi Savings Bank (MSB) should be accountable and that government should not pay loans on their behalf.

Nevin: Loan defaulters need to be accountable

Nevin: Loan defaulters need to be accountable

For sale: Malawi Savings Bank

For sale: Malawi Savings Bank

The proposed sale of MSB has attracted controversy amid reports that politically connected businesspersons and politicians obtained billions in loans from the bank which government intends to wipe off through promissory notes.

The civil society has also protested the move while some concerned citizens and activists have attempted to block the sale in court.

In published interview, Nevin said the ‘toxic’ loans should be dealt with as part of that process to make the bank viable, but should be done in a transparent manner with no elements of favouritism so that taxpayers should not lose out.

“The issue of toxic debts has to be dealt with as part of that process to make the bank viable, but it has to be done in a transparent manner with no elements of favouritism so that taxpayers should not lose out,” Nevin is quoted by The Nation.

“Any claim against government if they are offsetting loans needs to be verified as genuine,” he said.

In a statement released at weekend, government admitted creating the situation that has put MSB in this predicament, saying it used the bank to offer loans and payments, which ended up compromising the professionalism of the bank’s management.

The statement further said it was government’s strong view that the bad portfolio management practices imposed on the bank’s management would arise regardless of the political party in power
“In particular, each party would exploit the opportunity to abuse the bank on account that it is wholly-owned by the government,” reads the statement in part.

Government said in the statement that political interference in State-owned enterprises is a “worldwide reality”, which supports the argument for privatisation and divestiture, as advanced by the IMF and World Bank.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
Kenkkk
Guest

Csos and mps, please monitor also where the 6bn has gone. Has it really been used to recapitalize msb? What evidence have we got?

pipo
Guest

Dont stop monitering this government, bcoz it has weaked and foolish readers.

No tribalist lomwe.
Guest

Today’s times news is showing some msb loan defaulters’ will have their property sold(auction) why not do the same with the rest. That alone shows great favourism by our leaders.the timing 4 the sale itself is wrong., Shame.

waziyamba weka
Guest

Why are these parastatals run by politician? Had it been these thieves were from pakati or kumpoto mnkanamva.potion ndi ur fellow lomwes tuona mpanga chiyani a ana mutharika with ur DPP party.

waziyamba weka
Guest

Why are these parastatals run by politician ?kasambra,wapona kita do ur job.

Biyisikolo
Guest

DPP has admitted here of abusing the bank. I will shocked if some Malawians shall be commenting in favour of DPP unless they are not patriotic and mentally disturbed. Muli and Bingu borrowed Billions and Peter wants Malawians pay for the Two Thieves may be he was also involved being a blood brother. A Lomwe ndi Ayao aphunzitsa a Malawi kuba awa.

one malawi one people
Guest
one malawi one people

let the buyer buy together with the toxic assets azikabwezera konko ngongolezo.

Kenkkk
Guest

But the govt has already bailed them out, so they must return the money to the govt and pay back their debts to whoever eventually buys the bank.

But first we want our money back.

mgwantha
Guest
Mind you pple of Malawi this Bank is the one who collect government funds in dollars and kwachas everyday. There is need to stop depositing money through it because there is need of verification if indeed the money goes to the government accounts number one,or if the dollars suspense account indeed reaches the government. Malawians lets be patriotic its our government, our problem,no body will solve this for us. There are alot of credits from the Bingu era that is not paid to suppliers from the private sector that needs govt attention. I dont think it will be paid eg… Read more »
lesta
Guest

This is the reason lhomwes support dpp so much,this country is a laughing stalk,the world will question our integrity if we malawians will just sit and watch politicians rob us of a bank.

Alufeyo
Guest

Nevin. Who told you that Mulli and others wont pay? Just because you have insufficient pigment doesnt make you superior. APM already made it clear to Mulli that his govt will not shield him and others who owe MSB money. Why cant Nevin be like the American envoy very polite but from a real economy.

Kenkkk
Guest

Alufeyo, When did apm say so about mulli paying the debts? He should say so publicly, why behind the scene? The payments should also be verified if mulli is going to pay.

More From Nyasatimes