MPs Fight the Sale of Malawi Bank

Gondwe under-fire over MSB

Gondwe under-fire over MSB

By Chimwemwe Lusungu

Members of Parliament have vowed to stop the sale of the Malawi Savings Bank and challenged Finance Minister Goodall Gondwe.

MP for Lilongwe South Peter Dimba wants Gondwe to explain why the same government is selling a bank when it already plans to open another one.
“Why not just restructure MSB to take care of the investment aspect; why close a tomato business to open another one,” Dimba asked last week.

Gondwe told parliament that through the Public Private Partnerships Commission is selling its 100 percent stake in the bank.

According to the Reserve Bank of Malawi, MSB risks being closed because its soaring debt because of bad loans now at around K23.7 billion.

The late President Bingu wa Mutharika, using his proxy Leston Mulli, got a loan in billions. The High Court ordered Mulli to pay back the K3.2 billion. He has since applied to the Supreme Court of Appeal to extend the order and pave way for an appeal against the amount to be paid.