MALAWI SAVINGS BANK (MSB) NOT A GOVERNMENT ANYMORE REPORTS INDICATE (UNOFFICIAL)

Government officials have, howevernt maintained a tight lid on the matter with finance ministry spokesperson Nations Msowoya onTuesday dismissing the reports as mere rumors.

The issue surrounding the sale of MSB has court a lot of controversy with civil society organizations vehemently rejecting the
move alleging dubious motives by the government.

After a public hearing organized by the government on the matter recently in Lilongwe, it was expected that some of
the recommendations made will be considered by the authorities.
But now rumors are rife that government has finally sold the bank to First Discount House (FDH) at K5 billion.

One civil society representative Billy Mayaya alleged in an interview with Zodiak that has he evidence confirming the sale.

Mayaya has described the move as
daylight robbery. However, Ministry of Finance spokesperson Nations Msowoya has refuted the allegations, saying as far as he
is concerned government is still consulting on the matter.

However Zodiak could not independently verify the
reports as all the key concerned people, including FDH chief executive Thom Mpinganjira and the CEO of the Private Public Partinership Commission Jimmy
Lipunga were reportedly in meetings in Lilongwe. The minister of finance could
not be reached on his mobile phone.

Last month President Peter Mutharika suspended the process of selling the bank to allow government consult widely,
especially with the opposition and civil society organisations.
Some critics have said president Mutharika did this to only pave way for the passing of the 2015 National Budget as the opposition had vowed not allow the
Appropriation Bill pass unless the MSB matter was resolved.

Opponents of the deal feel the bank was undervalued and also accuse government
of trying to cover up loans that were dubiously provided to political figures connected to the ruling Democratic Progressive Party.

There are also concerns that selling the bank would affect its operations that mostly benefit rural Malawians.
But government argues the bank has to be sold because it is almost bankrupt and its capital is far below the internationally
accepted Basal II, a set of banking
regulations put forth by the Basel
Committee on Bank Supervision, which regulates finance and banking internationally to ensure institution liquidity.

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