Chakwera, CCJP warn govt over MSB sale

Government might have finally sold Malawi Savings Bank (MSB), but the dust over the controversial disposal of the bank is refusing to die with an enraged opposition, led by MCP leader Lazarus Chakwera, threatening the Executive of “consequences” for the decision that went against recommendations of the Budget and Finance Committee of Parliament.

The Catholic Commission for Justice and Peace (CCJP) has since described government’s conduct on the sale as an assault on constitutionalism.

Speaking in an interview after the House adjourned last Friday after a nine-week session, Leader of Opposition Chakwera said government will face unspecified consequences for going ahead with the sale of MSB to private-owned FDH Bank despite Parliament being made to believe the Executive had suspended the process and was waiting for a parliamentary report on the controversial sale.

Earlier in Parliament, Chakwera lamented how the Executive’s decisions on the sale and disregard of Parliament’s position on the matter had severely damaged the institution of Parliament and its ability to provide oversight.

Chakwera said the actions of the Executive throughout the process had led to questions of the “usefulness and purposefulness of the House.”

Chakwera  said the opposition was unhappy with the move  and warned that while the MSB matter  appeared to be “water under the bridge, any decision has consequences”, adding that  his party will pursue avenues to ensure checks it is supposed to provide continue despite the sale being finalised.

“We are not happy with the way some of those issues were handled. These issues are ongoing and when we say it is water under the bridge, we mean that we have understood and accepted that government made a decision and we must move on from that. But we have a responsibility to provide checks and we will do so on this matter even moving forward. And every decision has consequences,” said Chakwera.

He could not specify the option his party was exploring at the moment on the matter.

CCJP executive director Chris Chisoni said in an interview yesterday government’s determination to push ahead with the sale undermined Parliament’s role and unmasks President Peter Mutharika’s call for more dialogue on the matter as “cosmetic and insincere.”

“There are governance principles which should be adhered to in the process of democracy. The conduct of government on the matter has betrayed that. The issue of accountability and responsiveness role of Parliament has been severely undermined.

“The President called for dialogue and pledged to listen to the voice of Malawians, but before Malawians were given time to exhaust that process, the announcement was made.

“Parliament, as a representation of the masses, wanted to give an opinion and direction, but the consultations were curtailed immediately. The three (Legislature, Judiciary and the Executive) were supposed to work with each other, what we see now is the betrayal of that spirit and the betrayal of general idea that Parliament is a representation of Malawians,” said Chisoni.

The sale was announced barely days after the opposition and independents-dominated House approved the 2015/16 National Budget.

Malawi Congress Party (MCP) lawmakers supported by People’s Party (PP) and other independent MPs had ganged up against the sale of the bank, citing controversy over alleged toxic loans owed to the bank.

Finance   Minister Goodall Gondwe is on record as saying the bank’s sale received no opposition.

He also denied suggestions that government cheated Malawians by advancing a claim that it was consulting on the matter as one way of forcing the passing of the 2015/16 budget.

But speaking in Parliament, Leader of the House Francis Kasaila defended government’s conduct during the course of sitting of the House but deplored what he termed “personalisation of important national business by some in the House.”

Added Kasaila: “The House was characterised by high quality debate. There were moments we agreed and moments we disagreed but that’s a hallmark of democracy.”

But the session’s most dramatic moments came when the House discussed the emotive sale of MSB whose discussions were more heated even compared to the political firestorm of an alleged attempt to impeach Speaker Richard Msowoya.

Critics of the sale in the House condemned the Executive for lack of transparency on the deal, undervaluing the bank, breaking the country’s financial legislation; hence, described the sale as asset stripping.

Proponents of the sale said the deal was long overdue, citing urgent need for recapitalisation due to years of the bank’s loss-making.