MPs to summon Pres Mutharika over Malawi Savings Bank sale – MCP

Malawi parliament will summon President Peter Mutharika for questioning if the state goes ahead to sell Malawi Savings Bank (MSB) despite MPs asking that the sale be pended.

Speaking at a news conference addressed by leader of opposition Dr Lazarous Chakwera, the spokesperson of finance in Malawi Congress Party (MCP), Joseph Njobvuyalema said said the sale should not go ahead.

He echoed what Chawera said that in the interest of transparency, MCP feel and side with Parliament’s decision to ask the Executive to pend the sale of MSB Bank until Parliament completes its oversight role as the people’s representatives.

“Malawi Parliament saw it important to intervene on the matter as it represents the people,” said Njobvuyalema.

“ Therefore, the cabinet including the President can’t just wake up one morning saying they want to sell people’s assert without thorough consultations. This is why we came in for rescuing Malawians from such an abuse,” charged Njovuyalema.

Njovuyalema said if government won’t listen to the calls on the matter, parliament has powers to summon the President to answers questions regarding to it in the best interest of Malawians not few individuals.

“If they insist to sell the the bank as propased then parliament will do its needful job on the matter as this is the public’ taxes which needs not be used for selfish gains in the name of saving money but Malawians interest”, challenges Njovuyalema.

The Public Private Partnership Commission (PPPC) has opened bids for the sale of MSB where FDH Bank was the only bidder amid a challenge the Budget and Finance Committee of Parliament is leading to stop the sale until they consult stakeholders, including ordinary Malawians.

Peter Chakwantha, chairperson of the Legal Affairs Committee, which is also challenging the sale, said much as government had not flouted any law, there was need to review the legislation which empowered the Executive to get rid of a national asset without consulting Malawians.

“We believe there is a need to fo back to the people and reengage them so that recommendations towards its sale should be inclusive,” he said.

A member of the Budget and Finance Committee, Peter Dimba, who moved a motion in Parliament to halt the sale, has said if government was sincere about raising capital to save the bank then it could do so through an initial public offer (IPO) on the Malawi Stock Exchange (MSE) to enable all Malawians participate in the running of MSB

The parliamentary committee hinted it would seek legal redress if government went ahead with the transaction.

However, the Malawi Law Society (MLS) and Sunduzwayo Madise, a law expert in financial services regulation, have said Parliament has no legal basis to challenge the proposed sale of  MSB.

Madise, who teaches law at Chancellor College in Zomba but currently pursuing further studies in the United Kingdom, said MSB was registered under the Companies Act, but it was not a statutory entity created by a Statutory Act of Parliament for the MPs to have a say on its sale.

He described as an exercise in futility the move by the Budget and Finance Committee to seek views from people on whether the bank should be sold because the Minister of Finance had not flouted any laws.

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