Malawians Welcome Suspension of MSB Sale

Demonstrators against MSB sale 

Malawians welcome President Mutharika decision to suspend the sale of Malawi Savings Bank and pave way for the public debate. 

On Wednesday evening President Mutharika announced the suspension of the sale having listened to both opposing and supporting views.

Recently some concerned Malawians and Civil Society Organisations protested against the sale of MSB 

President Mutharika in a statement did not hide to mention that though a lot spoke with one voice, but those who have ventured to do so have mostly spoken from a partisan point of view or without full knowledge or proper information. As a result, the real and actual financial status of Malawi Savings Bank has been blurred.

President Mutharika 

In a statement President Mutharika says though the fact remains that MSB has serious liquidity problems which financial experts maintains the disposal of the bank, it is clear that the reasons for opposition are political for some people and sentimental for others

Mutharika has called upon everyone to approach this matter with an open mind.

Mutharika has further invited 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 they map the way forward and further appeals to all sides of the debate to speak about this matter in a manner which is fair, objective and non-partisan.

In the streets people have welcomed the decision to suspend the sale arguing that MSB is a public asset and decision made by few individuals was wrong and hopes  that the process will be done in a transparent  manner

Some said there is no need to sell the bank as the decision will not benefit Malawians.

Going forward others says wide consultation is necessary.

Get President Mutharika speech Read or download

Malawi CSOs, Parliamentarians Plan For Injunction On MSB Sale

Leaders for the last week Friday 15th May demonstrations against government decision to sale Malawi Savings Bank (MSB), says they will soon seek another alternative of halting the ongoing sale process.

Billy Mayaya a human rights activist says members of Civil Society Organisations together with some Members of Parliament are planning to obtain an injunction restraining government from proceeding with sale of MSB until Malawians understands what is happening on the matter.

He said the injunction will help to stop government from continuing with selling plans and their injunction shall add to last week stay order which others took in Blantyre.

Mayaya has further warned that if all avenues fail to stop government from continuing with the process of selling the bank, people will continue with vigils and demonstrations across the country.

Last Friday, Mayaya led Concerned Malawians to the National Assembly with petition asking legislature to stop government from continuing with MSB sale. However, parliament has recently failed to stop government on the matter through motion passed in February which restrain the sale of MSB pending Budget and Finance Committee to scrutinize the matter and make recommendations.

But, Mayaya says the petition to the National Assembly was a first step in demanding transparency and accountability.

MSB Sale; Get To Know Why Opposition MPs Says Big 'No'

Malawi Government has stiffened its head to sell the Malawi Savings Bank (MSB). There are so many backing to that; from legal aspect of the process of the selling of this national treasure which it has been argued that no one can halt the process, lack of enough capital to sustain the running of this institution and many other reasons the Malawi government is trying to justify on the sale.

A lot of human rights activists, economists and various experts in various fields have in the name of patriotism argued much on this ongoing topic of the sale of MSB. Some have strongly spoken against the sale while others supporting the government move to go ahead with sale.

Mutharika State of National Address Not Explicit Says PAC

Rev Dr. Felix Chingota

Public Affairs Committee (PAC) says President Peter Mutharika's State of National Address was not explicit to inform Malawians of critical developments taking place in the country.

President Mutharika delivered a long speech in Parliament as he opened the 2015/2016 Budget Session. Mutharika talked a number of issues taking place in the country from almost every government department and ministry. He also said his administration has already began delivering campaign promises.

But, Rev. Dr. Felix Chingota Chairperson for PAC said the speech lacked focus hence his speech style of covering everything. He said this has therefore left people in suspense as his lengthy speech failed to articulate in detailed form on each point he made.

“There was kind of a uniform way of presentation, he would pick up a ministry looking at what has been achieved so far and then looking what they are planning to do and was picking every government department and ministry.”

“Simply from a formalistic point of view in terms of looking backward and looking forward I think it was oky.” said Chingota, then daid “However, one would have thought that picking up critical areas would have been better, it was a long speech but in certain areas one would ask if that was worth reporting."

"So picking only very critical issues would be very important and dwell on them, elaborate more rather than speak on each and every item and therefore not speak in detail of those issues.” 

The Public Affairs Committee chairperson also noted that although Mutharika mentioned number of issues including xenophobia and floods but failed also to talk of sale of Malawi Savings Bank issue which is topical now and was not explicit on user fees in public hospitals.

The PAC chair however said, commended President his elaborative explanation on the issue of Devolution and Empowering Local Authorities.

"Since it was mentioned we are very happy because it is an issue that we have been advocating for. There should be devolution in terms of activities and that the local authorities should be given a lot of power so that they can manage affairs. This will also ensure that development should be closer to the people."

Chingota however, mentioned that "So it has been mentioned I just hope that it will not be a matter of rhetoric but also it will be implemented”

He also encouraged members of parliament to be thorough when making scrutiny to each and every item they are presented in the national assembly warning that "Otherwise we may spend money on not so much important issues”

MSB Not For Sale

Parliament Block the Sale Until Committee Give a Go Ahead

The National Assembly has passed a motion restraining government from continuing with plans to sale Malawi Savings Bank (MSB) until determination is made by a relevant Committee if the sale of the bank is a necessary move.

On Thursday, Dowa West Parliamentarian Hon Dzonzi Kusamba brought in the House a motion during Private Members Motion where he moved that the House should resolve that the Sale of Malawi Savings Bank Limited be pended for the time being and that the matter be referred to the relevant Committee of Parliament (Budget Committee) for it to consult with stakeholders and report to the House.

When moving the motion, Dzonzi said the noble objectives of Post Office Savings Bank now Malawi Savings Bank Limited (MSB) established in 1910 by the colonial government are intact and yet to be achieved.

“But how can we achieve them if the Bank runs into private hands whose objective will be pure “profiteering”. Inquired hon. Kusamba who alleged the sale of Malawi Saving Bank Limited is propagated by few selfish individuals

Malawi government is planning to sale MSB for Conditionality of World Bank (WB) and International Monetary Fund (IMF), that Malawi Government should not be running businesses such as bank and that MSB Ltd does not meet the requirement of BASEL II instituted by the Reserve Bank of Malawi (a framework that has been put in place to assist banks manage financial risks well by maintaining a certain level of capital, currently a minimum capital for banks at an equivalent of US$5million) 

Dowa West Legislature has argued that WB and IMF condition is “fraudulent” and achaic type of reasoning which denies Government to ably discharge its duties of providing social-economic services to the rural communities which may appear unprofitable in the eyes of private hands. 

On BASEL II, he said MSB meets the minimum capital requirement but slightly falls short to meet the optimum capital requirement in order to meet the prescribed liquidity and capital adequacy ratios. He even indicated that Malawi can do without implementation of BASEL II just like neighboring economies that are stronger and better than Malawi’s economy.

“The question on the same is this “why was BASEL I jumped from implementation? Why is Reserve Bank of Malawi (RBM) forcing local banks to comply with BASEL II without an opportunity of orientation BASEL I would have offered.”

Hon. Kusamba also named “Accumulated Bad Debts” as major reasons that is eroding the bank’s Capital. With certainty he pointed “bulk of the bank’s non-performing loans” belong to Mulli Brothers Limited. 

He said the remedy is that Government should intervene by having Mulli Brothers Ltd repay the debt and that the Bank should take over the assets against which Mulli Brothers Limited loan was taken on.

 “It is an open secret, that the Mulli Brothers Ltd was granted the Loan in question when DPP was in power and now that DPP is in power again, the Government wants the Bank sold, Really?” queried the parliamentarian while concluding that there is no need for Malawians lose a National Treasure just because Government “completely lacks any political will” to mitigate on this questionable sale.

When debating the motion, Minister of Finance Goodall Gondwe clarified that it is not true that only Muli owe the bank as alleged by the member. He also promised an update of what is happening on that matter.

Goondwe irked members in the House when he mentioned that the matter of selling the bank at this time can only best be handled by lawyers and not National Assembly. “This is a legal matter it is not as easy as you think” 

Without delay, Salima South Parliamentarian hon. Uladi Mussa rise on point of order “The statement from the minister to say parliament is useless leaves a lot to be desired” he said, “Does the Minister know that parliament can impeach president? What is Malawi Savings Bank?”

Surprisingly, Leader of House Hon. Francis Kasaila also registered his support against sale of the bank “We in the business Committee of the house agreed that we need to bring this issue in the House so that the sale of the bank is done in transparent process.” He added that People from his Constituency are also against the sale of the bank.

Other parliamentarians including Salima North West, Jessie Kabwira and Salima Central, Felix Jumbe, in support of the motion as moved by Dowa West, said Malawi has been ranked one of the poorest countries because of such poor decisions which robe citizens “greatest treasure”.