Under pressure Mutharika suspends sale of Malawi Savings Bank

Coming under intense pressure from the public, the opposition and civil society on the controversial sale of the state-owned Malawi Savings Bank (MSB) to only preferred bidder FDH Bank of Thom Mpinganjira, President Peter Mutharika has decreed that the process should be halted to allow for continued debate on the matter.

President Mutharika: Suspends Malawi Savings Bank sale

President Mutharika: Suspends Malawi Savings Bank sale

Malawi Savings Bank

Malawi Savings Bank

In a statement delivered on Wednsday by Press Secrtary Gerald Viola, Mutharika said he has made the order following the resistance which has come about the sale of the bank.

Mutharika said it was important to learn from the past on how similar transactions have been handled.

“Not too long ago, Air Malawi found itself in a similar situation. There were people who strongly opposed inviting a strategic partner in Air Malawi. There were others who saw the need for that initiative. We argued, quarrelled and rumbled about it. By the time we concluded the transaction, Air Malawi was a mere shell and Government ended up with huge debts to settle,” said Mutharika in a statement.

“Government would like to avoid a similar situation happening in the case Malawi Savings Bank because it would be more detrimental to the interests of the country than was the case with Air Malawi,” he added.

The Malawi leader stated that the country cannot achieve consensus on a matter of this nature, hence seeking the advice of the Regulators of Banks and Financial services.

“Government has a duty not to allow the economy to collapse because of our political disagreements. I am, therefore, calling upon everyone to approach this matter with an open mind. As a Nation, we would do well to follow and take the advice and direction which those familiar and experienced in the field of financial services have pointed to us.

The President stated that his government will review the process of recapitalisation that was undertaken.

“The review will cover all the aspects of the transaction. I am therefore inviting all those who have spoken on this matter including the Members of Parliament, civil society organizations and the experts to come up with reasonable proposals covering all the aspects of the transaction so that we can map the way forward,”he said.

But Malawian citizens are urging the President that his suspension is not far reaching enough; they are demanding full cancellation of the sale and withdraw of government promissory notes to pay off toxic loans of the defaulters, mostly party financiers of his DPP.

Mutharika has been accused of leadership failure if not taking decisive action on problems facing MSB.

Even opposition lawmakers are demanding Mutharika to appear in parliament to face political grilling which will also centre of the MSB .

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Edmund
Guest
in my view this issue could have been very simple had we not involved political interference. 1. I support sale of MSB bank because the govt is struggling to even to control its assets look so many cash gates everywhere Cashgate jetgate, MinAgricgate Chikangawagate, MSBgate etc. 2. The Sale must be a public one through IPO just like we did with Press Corporation. All Malawi citizens must participate ! it is our right not just one person aah! 3. Right now Bonongwe should be fired for failure to manage the bank. Why is he failing to collect the bad debts.… Read more »
owot
Guest

The IMF should not apply double standards. Following the 2008 Financial Crisis the UK and other Western governments took a stake in their banks and probably still hold large shareholding is some banks. Why is Malawi Government not doing the right thing. For your information decision to sell MSB to FDH was made a long time ago even before the advert was put in papers. If they want to buy let them pay the correct price to Malawians not the peanuts they are offering.

hildaa manjitika
Guest

let only those who have experience .

Keen Observer
Guest

Ya the people have spoken. Well done Mr President

anyereni muwafuna
Guest

Koma kumeneko!!!!!!

Mwana Mulanje
Guest

The fact is that Daniel Phiri obtained the loan using Mulli. Now Peter wants to use poor Malawians to settle his brother’s loan. Don’t be fooled. He is the biggest beneficiary!

Chindere chakufikapo
Guest

Sale MSB! Boma! boma! boma!. I have ordered nt to sale MSB. Boma! boma! boma! Pupet of govt. I’m proud to b on ze opposition side. Can’t even think and argue where thngs goes wrong.

Madzi amphale sokumwa
Guest
Madzi amphale sokumwa

Thats why we always say, we need strong opposition, because had it been our opposition is weak, this Ibu could have not change his mind.

lenjele
Guest

Ngwende nayo

Yamie
Guest

great idea PP Guru,

wpDiscuz

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