MCP seeks answers on MSB sale proceeds

Malawi Congress Party (MCP) has revived debate on the Malawi Savings Bank (MSB) sale to FDH Bank by demanding to know the whereabouts of K9 billion proceeds from the transaction.

Government sold MSB in 2015 after it failed to meet regulatory requirements to capitalise the entity as recommended by Reserve Bank of Malawi.

In his response to the Mid-Year Budget Statement on Monday, MCP spokesperson on finance Alexander Kusamba Dzonzi alleged that Minister of Finance, Economic Planning and Development and the ruling elite colluded to benefit from the sale.

Justifying his allegation, he said some people within the ruling elite failed to repay loans to MSB, resulting in its failure to meet requirements.

“The ministers of Justice and Finance are on record having told the National Assembly that the MSB toxic loans the government settled on behalf of the DPP [Democratic Progressive Party] elites will be collected, but up to now, no single tambala has been collected. Malawians today don’t even know where the proceeds of the sale amounting to K9.9 billion are being kept and for what,” Kusamba Dzonzi said.

“The ministers of Finance and Justice must come out clearly and tell [Malawians] where their money is being kept. Malawians must know that had these monies been available, the University of Malawi would have subsidised the school fees for our children to continue their studies uninterrupted.”

There was no response from the government side to the allegations but the Minister of Finance Goodall Gondwe is expected to wind up debate on Friday where he will address the concerns from the debate on his statement and budget revision. n