Privatization has left bad memories in Malawians mind. Results in job cuts and sometimes closure of the company or if it manages to survive, it becomes less important to Malawians. So, Malawians anticipate the same from Malawi Savings Bank (MSB) sale.
The Finance spokesperson for the Malawi’s main opposition party, Malawi Congress Party (MCP) says more harmful cost for selling Malawi Savings Bank (MSB) are imminent although FDH Holdings has promised hope having acquired the MSB two weeks ago.
Government signed the sale of its 75% shares to FDH Finance Holdings Limited to a tune of K5.4 billion and has set aside Capital subscription for Basil II of K3.20 billion and Investment in ICT to a tune of K0.90 billion which total the investment of K9.5 billion.
CEO for FDH Thomson Mpinganjira in an interview casted out fears of job cuts at MSB saying they want to do serious business of expanding the bank, a work that require more workers and more branches.
However, Finance spokesperson for MCP, Hon Alexander Kusamba Dzonzi says FDH holdings CEO promise is oratory and likened his remarks to promises made in previous privatized public institutions.
Hon Dzonzi stressed that MSB workers are at risk of being sacked and closure of many branches across the country is more likely.
“The Capitalists who have bought this bank have no remorse and don’t care about Malawians. They don’t care about 630 employees that are going to lose their jobs.” said Dzonzi as he name similar job cuts that happened at David White Head, Malawi Railways among.
“A lot of public institutions in this country have been privatized believing that that’s the way forward but what we see is nothing.” He claimed
“So the people who have bought this bank can make whatever promises but nobody is going to hold them responsible. And when they will start firing our sisters and brothers, nobody is going to ask why, when they start to close branches around this country, nobody including the Government will ask why.” Challenged Hon. Dzonzi
Hon Kusamba Dzonzi is a legislature who brought the private member’s motion on 26th February this year in parliament, asking the House to stop government from selling MSB pending Malawians views. Then the evening before the day the bank was sold a Report from Budget and Finance Committee of Parliament was presented and noted by the whole House. It made numerous recommendations emphasizing the recapitalization to meet some of the regulatory requirements including restriction of the sale of the bank.
But the Legislature, expressed betrayal by Malawi Government for failing to obey all recommendations made by National Assembly.
“I feel betrayed and I feel Malawians have been betrayed.” He said “I believe and respect all the people involved and I believe also that this country is governed by laws. If we start disobeying our own laws then how are you going to govern this country? Because when the house speaks that’s the people of Malawi speaking.”
“Now if the owners of the bank said don’t sale the bank, who so ever has sold this bank, then on whose behalf is he working? On whose interest is he trying to service? Who is he trying to please? He inquired then said “That definitely it is not Malawians.”
Hon Alexander Dzonzi, who represents people from Dowa West added that government should have used other economic modules to recapitalize the bank.
He was even doubtful if the leaders who have been ruling the country since 1994 have patriotism.
Thomson Mpinganjira CEO FDH Financial Holdings who bought MSB he said they are planning to us MSB to expand their presence in the country and not shrink it. “No one will be fired” he said in the recent interview
“Out of 5.4 cash that we are going to pay the Government (this week), K300 million of that we are buying shares for the employees of the bank” assured Mpinganjira
Malawi Savings Bank sale has been attracting criticism among Malawians.
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