Mwanamvekha muddled in Mulli’s loans

Malawi Savings Bank

Former Finance Minister Joseph Mwanamvekha has been mixed up in the Mulli Brothers’ loan which the company acquired from Malawi Savings Bank (MSB) when Mwanamvekha was the bank’s chief executive officer.

Malawians on social media believe Mwanamvekha played a huge role in in the Mulli loan saga as he was also Finance Minister when government and Mulli reached a deal allowing the company to repay the loan in 167 years.

Mwanamvekha: It will be difficult

“Mulli got loans from MSB when it’s CEO was Mwanamvekha. Mulli signed for repayment of the same loans for 167 years with government when its Minister of Finance was Mwanamvekha. Do you see what I see?” said posted one person on social media.

“ACB must investigate both instances and check his involvement,” commented another person on the post.

Other commenters claimed that it was clear “collusion” and “corruption of the highest order.”

Mulli Brothers Limited acquired K4.9 billion loan from MSB during the Bingu wa Mutharika regime. Mulli Brothers owner Leston Mulli was a close ally of Bingu and later Peter Mutharika.

At the time the loan was acquired, Mwanamvekha was CEO of MSB and he also served as Secretary to Treasury.

The bank was sold in 2015 for K9.6 billion during the Peter Mutharika administration. In the same year, government repaid about K6 billion in toxic loans on behalf of MSB defaulters including Mulli Brothers, with the belief that the borrowers will repay the money to government.

But by 2019 government had failed to recover the money, and with Mwanamvekha now working as a Finance Minister in the Peter Mutharika administration, government gave Mulli Brothers 167 years to repay the loan which had now ballooned to K10.5 billion.

The Tonse Alliance Government has since ended the agreement and says it will look to recover the money as soon as possible.