FDH Bank Donates K2 Million To Spouses Of Policemen

Kachama (left) Majamanda (right)

A local bank, FDH Bank has donated K2 million to the wife's of Policemen in the Malawi Police Service.

Through the donation, FDH wants to support the policemen spouses engage in some small scale businesses that can support them and their families.

Majamanda

Head of Corporate Business Banking for FDH Bank, Sitabene Majamanda when making the donation at the Police Head Quarters in Lilongwe, said this year, FDH decided to empower police officers wives so that they can support their families through small scale businesses while as their spouses are providing noble safety and security service to the country.

"When we came in to Malawi Police Service on a business trip, we actually come across this idea that what if we come up with the sustainability what we call Ethics and Sustainability within our corporate social responsibility to create a fund for the spouses of the police men.

We know the great job that the police men do. They are so many of them but we thought about their wives that are sitting at home supporting the men that are out to do the job. So our management was pleased to support this initialize because it is part of women empowerment." Explains Majamanda

"When our police officers are sure that their spouses are generating extra money, they can have peace of mind while carrying out their duties" added Majamanda who thanked the dedicated men in Uniform who are playing a critical role in the development of the country day and night of providing safety and security services that is important for many of Malawian business to be able to do their business in peace.

Kachama

After receiving the money, the wife of Inspector General of Police, Ruth Kachama, chairperson for the Police Officers Wives, said the donation will boost their Welfare Fund established a year ago when State President Peter Mutharika made a donation worth K5 million.

"This is good gesture and will assist us very much and empower the wives of police officers." Said Mrs Kachama

Kachama said some of the businesses that Police wives do include poultry, groceries and other small scale businesses.

The K2 million revolving fund will be fully administered by the Malawi Police Service without the FDH Bank involvement.  However, the bank will continue supporting the women by providing some training through business clinics to help them gain basic skills for running small businesses. The first lot of women have already undergone this training.

The police women will be able to borrow small amounts that they need to do some small scale business. When they borrow the money, it will have a 6 months grace period after which they are expected to repay it without interest. The repaid amounts will allow the other women to also borrow from the revolving fund and also repay interest free after the six months period.

According to the Bank, there is free interest because the donation is coming as cooperate social responsibility and women empowerment. The Bank further maintains that the help was necessary to empower women spouses who in most cases take care of the children so that they contribute to the economic well-being of their husbands by engaging in some activities that can generate some extra revenue for the family while as their husbands are providing safety and security to the nation.

FDH Bank is a Malawian Bank which started operations in 2009 and is part of the FDH Financial Holding Group which has subsidiaries in stockbroking, discount house operations, Money Bureau and recently acquired 80 percent stake in Malawi Savings Bank

Expect More Job Cuts at MSB says MCP Shadow Finance Minister

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. 

NBM To Turnaround Inde Bank Into Profit Making, Offer New Services

National Bank of Malawi (NBM) has new plans for its newly acquired Inde Bank for both growth and new services.

On Thursday, NBM bought both Malawi Government and ADMARC shares in Inde Bank to a tune of KK4.7 billion representing 67% of shares would use K1.6 billion for regulatory requirement for the recapitalization and this sums to K6.3 billion. The signing agreement took place at the Capital Hill where Minister of Finance Goodall Gondwe signed the deal on behalf of Malawi Government and Mr. George Partridge signed on behalf of NBM.

At the same event government also signed the sale of Malawi Savings Bank (MSB) where Minister of Finance signed on behalf of Government while Dr. Thom Mpinganjira signed on behalf of FDH Holdings

In an interview, NBM Chief Executive Officer (CEO) Mr. George Partridge says NBM had due diligence when placing bid and that after acquiring the bank NBM would look further at how they can do with the bank.

Partridge then said among others, NMB is ready to use its new subsidiary to offer other products that are not offered by Malawi banks. He said NBM will use Inde Bank to utilize offers from Development Banks lines of credits to service Malawians as National Bank is failing to provide them due to its commercial license.

He also indicated that NBM bought the shares to take over the bank so that they can manage it in such a way that it starts to make profits again to prevent systemic risk to the finance system.

“After such long process the anxiety are now over and we can now move ahead and reorganize and restructure Inde Bank into a bank which we would like it to be” He said, “at the moment the bank is a loss making and failing to meet some of the regulatory requirement of the registrar (Reserve Bank) and one of the things is to recapitalize the bank so that it abides to RBM requirement.”

The NBM CEO assured; “We think we can turnaround the bank. We have strategies to turnaround that bank to be profit making bank once again”

He then explained; “We have seen that there are things that need to be done right in that bank and we think that we have ability to do that. We have demonstrated ourselves that we are making profits because of what we are doing. So if we apply the same methods and systems that we have to Inde bank we think we can turnaround Inde Bank, there is no reason why Inde Bank should be making losses.”

NBM has bought Malawi Government and ADMARC shares and will pay the money this week and the part of the money will be used for the recapitalization of the bank since the bank is undercapitalized.

FDH Boss Says No Retrenchments After MSB Acquisition

As anxiety continue to grow for possible job cuts at Malawi Savings Bank (MSB) following its acquisition to FDH Financial Holdings Limited on Thursday, the new managers jettison such fears. FDH is into serious banking expansion requiring more workers. 

On Thursday, Minister of Finance Goodall Gondwe Malawi Government signed the sale of Malawi Savings Bank (MSB) on behalf of Malawi Government while Dr. Thom Mpinganjira signed on behalf of FDH Holdings.

The sale of the bank has been described by many Malawians as unfortunate great loss of national treasure and that Malawians will face more negative repercusions will follow soon.  

Thomson Mpinganjira CEO FDH Financial Holdings has cast out fears that the acquisition of the Malawi Savings Bank will lead to retrenchment of workers and closure of MSB branches.

But FDH CEO says there should be no worries. He says they are plans to expand their presence in the country and not shrink MSB and that ‘no one will be fired’

“Out of K5.4 billion 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” said Mpinganjira

“We have got vast network and we looked at how we can expand; We can expand by growing slowly 50 years, or acquisition. So we decided to go for acquisition.” He added,  "this acquisition will put us on third position in banking" said Mpinganjira who could not remember their current position in Malawi.

“After this acquisition we are going to become Bank number three. But our plan is to move further beyond number 3 or number 2. And then we will see what happens after 10 years. But for us to realize our plans to grow to even number 1, it means that we cannot start closing down branches or retrenching, because what network are we going to use to grow.” he explained

Speaking of plans for the MSB he said FDH Financial Holdings Limited would like to use MSB penetration to offer insurance services in villages just like all other countries are doing.  

"Our partners Old Mutual are insurance company. Insurance penetration in Malawi is 3% now,  banking is somewhere around 22% to 33% so it is very low. So we would like to utilize the network of Malawi Saving Bank to reach out to the rural masses in insurance” 

“But we think that since the majority of people are in the villages, MSB is not just going to be banking but it also be insurance products that will be taken to the people."

Some protests were
held asking government to
halt the MSB sale process.

MSB was sold told as one way of recapitalising the bank which was failing to meet some regulatory requirements including Basil II due to financial challenge fueled by toxic loans obtained by some businessmen connected to government. 

However malawians proposed that government should have recapitalised the bank with no option of selling it.  

But the FDH CEO has challenged that in a specified period of time the bank will make profits "In three years time the time stipulated in the agreement that which is 24 to 36 month that we must take this bank to the Malawi Stock Exchange to sell Malawi Government portion to Malawians, you will not be surprised because you will be watching developments in the Malawi Savings Bank. But we will make Malawians proud that fellow Malawians were able to do what we were planning to do”

Asked if they plan to rename the bank he said FDH Holdings will be guided by the regulations by Registrar of Financial Institution but now will run the bank side by side. 

FDH Financial Holdings Limited has acquired MSB to a tune of K5.4 billion, with 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.

FDH Fincial Holding Limited owns FDH bank, First Discount House, FDH Stockbrokers and FDH Money Bureau.

Kamlepo Call For Peter Mutharika Resignation Over MSB Sale

There was a heated debate in the National Assembly after learning that the Malawi Savings Bank sale has been reached and the government has signed the deal with FDH Bank on Thursday morning.

The information reached the house in the afternoon and resulted into the early lunch break as members began to demand for more explanations from the government over the decision.

Immediately the house resumed sitting in the afternoon a lot of members of parliament including Uladi Mussa, member for Salima South asked why the Minister had decided to sell the bank yet the house had on Wednesday passed a motion which restricts sale of MSB instead, provide enough resources.

He even asked why the sale was done yet the president announced the suspension of the sale.

However Minister of Finance Goodall Gondwe said “Before we took this action president announced his decision that we can now go on with the sale.”

The national assembly passed resolution to halt to sale the bank when the committee on Budget and Finance on Wednesday brought in the house, a report which recommended government to use other avenues except sale of the bank

Rumphi East legislature, Hon. Kamlepo Kalua while wonder to whose interest did the President had announced the decision to sale the bank made a strong call that “Am therefore calling the resignation of the president of the Republic of Malawi Professor Peter Mutharika!

Chakwera

But Leader for the house in the National Assembly Francis Kasaila tried to rescue the president invain by saying “This is an executive decision on behalf of all Malawians” and added that the decision was legal

Leader of Opposition Hon. Lazarus Chakwera said, the decision to sale the bank was lack of transparency from beginning to end

He said the minds of the executive were made up to go for the decision and set aside loads of calls from the public.

He said people should expect more problems in future and the poor Malawian will pay the price.

He also bemoaned that the relevance of National Assembly on the matter was overlooked

There were emotions as the motion was being debated to the extent that the Deputy Speaker of the National Assembly Esther Chilenje pleaded for debate of the matter with “sober mind”

Chairperson for Agriculture in the National Assembly Hon. Felix Jumbe registerd his concern in the house saying the sale of MSB is a loss to Malawi’s strategic asset.

He even suggested that Malawi would have recapitalized the bank by asking people to contribute K20, 000 per person which would have raised over K50 billion.

“You are causing poverty to people of Malawi by selling the Malawi’s strategic assets” and pleaded for rescind of the decision 

Hon. Juliana Lunguzi

Dedza East Parliamentarian Juliana Lunguzi described the sale as one of the worst decision ever made and worried if the laws of the land are any important regarding that by requirement of the law the house had presented report which the whole house adopted and restricted the sale of the Bank. She then questioned the relevance of the existing laws.

MSB Sold to FDH as Inde Bank Bought By National Bank

The Malawi Savings Bank (MSB) has finally been sold to First Discount House (FDH) Holdings Limited, Malawi government’s preferred bidder committing to invest K9.5 billion including K5.4 billion for the existing shares.

Government has justified the sale saying the unanimous support to sale the bank was made by the Academia, Economics Association of Malawi, Banker’s Association of Malawi among others through various debates it conducted.

“It was, however, appreciated that any attempt to abort the transaction would deeply harm the financial sector and the would aggravate the country’s risk ratings.” Said Finance Minister Hon. Goodall Gondwe at the signing of the bank’s sale Thursday morning

FDH Holdings offered K5.4 billion in respect of 80% of the shares of MSB and claims the offer is far in excess of the bank’s net assets which the independent valuation done by ECAMA and Professor Ben Kalua, had placed at no more than K4.5 billion after excluding toxic assets.

Of the 80% shares to be acquired by FDH, 5% shall be sold to the staff and the 20% Government shares shall full ultimately be listed on the Malawi Stock Exchange for Public participation.

The total investment by FDH Holdings will consequently be; Purchase price for the shares- K5.4 billion, Capital subscription for Basil II-K3.20, Investment in ICT-K0.90 billion and the total investment is K9.50

“It is important to note that all the bids were prepared on the basis that the Government would hive off the off the toxic assets. Had the toxic assets remained in the bank, the offer price would have been significantly depressed.” Said Gondwe

Goodall Gondwe further said government has established a special purpose vehicle in order to optimize efforts of recovering the toxic debts owed to the MSB and that professionals have been appointed to recover the debts. He said those who may fail will have their assets confiscated and within six to one year the experts will have finished the the job.

Gondwe has further assured that MSB sale will “benefit from a more dynamic and innovative management through private sector participation and added that any further delays in implementing the sale may precipitate into untold arm on the economy, and may greatly undermine the integrity of Malawi’s system.”

Meanwhile, Inde Bank, has been sold to National Bank of Malawi (NBM)

The bank has been sold to a tune of K4.7 billion which is 67% of shares where by K1.6 billion is for the regulatory requirement for the recapitalization. And this sums to K6.3 billion.