Malawi Savings Bank curse: Govt. goes after Mulli, others

Malawi Savings Bank

Malawi Government has been meeting debt collectors over the recovery of K6.1 billion loan which some companies borrowed from Malawi Savings Bank (MSB) before the bank was sold.

A special purpose recovery vehicle (SPRV) was created during the Democratic Progressive Party (DPP) administration and the current Tonse Alliance administration is looking to revive the SPRV.

Treasury spokesperson Williams Banda has told the local media that government will update the public regarding the meetings. Banda added that some beneficiaries of the loans such as Mulli Brothers are currently repaying.

Mulli Brothers allegedly owed the bank K4.6 billion. It was revealed last year that the company agreed with the previous government to be pay about K5 million a month, translating to 167 years of repayment.

MSB 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 with the belief that the borrowers will repay the money to government.

The bank was sold to FDH Bank owned by business magnet Thom Mpinganjira who is currently serving a nine-year jail term for attempting to bribe judges presiding over the presidential elections court case.

Mpinganjira wanted the judges to rule in favour of the then President Peter Mutharika of the Democratic Progressive Party. During trial, he revealed that, through his trust, he lent K900 million to the DPP.