Don’t panic over MSB’s sale—Lipunga

The Public Private Partnership Commission (PPPC) and Malawi Savings Bank (MSB) have said people’s money is in safe hands following the revealations that government wants to off-load some stakes in the Bank.

PPPC and MSB on Friday called for an impromptu news conference to allay fears depositors at the Bank might have experienced following revelation of changes taking place.

Earlier in the day on Friday, our sister paper, The Nation, carried an expose revealing significant changes at the wholly-owned State bank whose shareholding would be up for grabs and the purported lack of leadership at the financial institution.

The paper revealed that government seconded the banks chief executive officer, Ian Bonongwe, to Office of the President and Cabinet (OPC).

And in a December 22 2014 letter, Secretary to the Treasury (ST) Ronald Mangani ordered the Finance and Audit Committee of the MSB Board, through its chairperson Jimmy Lipunga, to take over the daily operations of the bank.

But two days after the ST’s directive, Lipunga tendered his resignation from the board effective December 31 2014, fearing conflict of interest as it is the PPPC that will facilitate the bank’s capitalisation process.

But at the news conference on Friday where the main speaker was Lipunga, he assured the depositors at the bank and the public that there was no leadership crisis at the bank.

Lipunga said, in fact, two other State-owned financial institutions, Indebank Limited and Pride Malawi Limited, were also going through the same capitalisation process to comply with Base II requirement as directed by Reserve Bank of Malawi (RBM) in relation to capital adequacy.

Lipunga said the capitalisation was good news because it would undoubtedly strengthen the financial institutions involved through injection of new capital preferably by a strategic equity partner.

Lipunga said: “This process will be implemented through strict adherence to the Public Private Partnership Act and the Companies Act and other legal and regulatory frameworks.

“With reference to an article that appeared today in the media, the directors and management of Malawi Savings bank would like to assure all depositors and the general public that the board and management are fully in control of the bank.”

He said the board was collaborating with the PPP Commission and the regulator to ensure that all assets and depositors funds were safeguarded.

Lipunga, who was flanked by MSB board chairman Mandala Mambulasa and MSB secretary and legal adviser Videlia Mluwira, said the general public would be updated about the progress of recapitalising at the financial institutions.

He emphasised there was no need to panic as the MSB was a regulated financial institution fully backed by the Malawi government.

He said after the process, government would be a minority shareholder, which he said is news that should excite the public as the institutions would be financially strengthened.

After the dilution of the shareholding, he said government would not be in control, adding this has happened to other companies owned by government before, including banks.