MPs ambush Goodall on MSB sale
Opposition members of Parliament (MPs) yesterday ambushed Minister of Finance, Economic Planning and Development Goodall Gondwe to explain developments surrounding the disposal of the wholly State-owned Malawi Savings Bank (MSB).
The MPs made the queries as Gondwe was responding to questions during yesterday’s question time which run into the second half of the day’s sitting.
Salima North West MP Jessie Kabwila (Malawi Congress Party-MCP) stirred the hornet’s nest when she told Gondwe that she had information that the sale of the bank would be finalised this Wednesday, but there has been no explanation from the minister on what has transpired.
Kabwila was especially angered that government had not informed the House on the decision to bail out some borrowers who created toxic assets in the bank’s loan book before the sale, some of which belong to political allies of the current Democratic Progressive Party (DPP) administration.
She said: “We are prepared to do anything until we have satisfactory answers. We want some answers!”
In response, Gondwe apologised for not appraising the House of latest developments, saying this was as a result of the injunction which some MSB employees obtained against the sale, but has since been vacated.
He said he has since requested the leadership of the House to give him time to make a statement on the history of the MSB sale and what it means to replace toxic assets with promissory notes.
Dowa East MP Richard Chimwendo Banda (MCP) argued that by vacating the injunction, the government was decided on the deal.
Gondwe floundered in his response to that conclusion, but recovered to appeal to the MPs to act like leaders.
He further exonerated the DPP government from allegations that the administration was pushing for the sale, saying the process started in May 2013 and continued until this year.
Government is diluting its shareholding in MSB to, among other things, ensure that MSB meets new Basel II regulatory requirements in terms of capitalisation.n
