Parliament discusses MSB sale
The National Assembly yesterday rejected the proposed sale of State-owned Malawi Savings Bank (MSB) and has since referred the matter to the Budget and Finance Committee of Parliament for further scrutiny.
Presenting a private member’s motion on the issue, Dowa West Member of Parliament (MP) Alexander Kusamba-Dzonzi (Malawi Congress Party-MCP), said the relevant committee should be in the best position to scrutinise the proposed sale objectively.
In her contribution, Salima North-West MP Jesse Kabwila (MCP) said the country cannot afford to lose MSB since it is the only commercial bank with nationwide footprints.
She said: “Let government be transparent with the matter in disclosing its valuation and buyers. Our job is to protect people’s assets and Malawians don’t want their bank to be sold. Period! We will do anything to make sure that MSB is not sold.”
Felix Jumbe, Salima Central MP (MCP), asked government to turn MSB into a cooperative bank other than selling it outright.
Said Jumbe: “Poor decisions over national assets and how they are disposed of have made us very poor. Over the years, the Malawi Rural Finance Company [MRFC], the Malawi Development Corporation [MDC] and the giant Commercial Bank of Malawi [CBM] were sold and the same argument was put across.”
In his response, Minister of Finance, Economic Planning and Development Goodall Gondwe touched a raw nerve when he said the issue of selling MSB started in 2013 with the People’s Party (PP) administration of Joyce Banda and that the Democratic Progressive Party (DPP) government is only implementing what was already agreed upon.
Said the minister: “Right now, the process of identifying an independent valuator to determine the wealth of MSB is underway and to curtail the process would attract legal challenges.
“Let me also take this opportunity to clarify fears that the MSB sale is aimed at shielding some people who have huge debts with the bank and no buyer has been known.”
However, leader of PP in Parliament UladiMussa, who is also Salima South MP, described Gondwe’s sentiments as “useless”.
Said Mussa: “His [the minister’s] statement leaves a lot to be desired. Does the minister know that this House can impeach the whole President?… What is MSB after all?”
With the House now charged, Mangochi Monkey Bay MP Ralph Jooma challenged Gondwe by saying MSB cannot and will not be sold behind Parliament’s back.
“The minister should know that lawyers or no lawyers, a national treasure like MSB can’t be sold under the counter,” he said.
Concluding debate on the issue, Dzonzi joined Jooma by asking government to stop pushing blame on previous regimes on the MSB matter.
In a separate interview, Gondwe told The Nation that the recommendation to sell the bank came from the International Monetary Fund (IMF) which said a weaker MSB would have ripple economic effects on other banks and the overall performance of the country’s economy.
MSB has 74 outlets across the country with over 600 employees and its assets stand at an approximate K46 billion (US$102 222). Unverified reports that the bank is earmarked for an K800 million (US$1.8 million) disposal infuriated opposition backbenchers.
