October 21, 2020

In an on- going whistle blower initiative, the Human Rights Defenders Coalition [HRDC], has written a letter to the Minister of Finance, Hon. Felix Mlusu calling upon his office to inform the nation on the status of the so called Toxic loans at the sold Malawi Savings Bank [MSB] and what it intend to do about them.

The HRDC says Malawians have seen banks seizing houses and property from unconnected people saying it believes that all Malawians ought to be treated equally.

In a letter to the Minister with copies to the Hon. Attorney General and the Director, Anti –Corruption Bureau [ACB] dated 12th October, 2020, the HRDC claims that it has received information that the loans up to this date have not been repaid.

HRDC has written finance ministry demanding answers on toxic loans for Malawi Savings Bank(MSB)

The letter says Government sold MSB Bank to FDH Bank and when the bank was being sold,  some politically connected individuals and companies owed the bank over MK 6 Billion.

The HRDC says the former Minister of Finance, Joseph Mwanamvekha is on record having told parliament that Government would recover the money.

The organization says some of the companies involved are; Mulli Brothers which allegedly owed MK 4.6 Billion, Sterling Timbers borrowed MK 1.4 Billion to set up a timber processing plant in Chikangawa forest, which was never built, Varibo Spirits which borrowed MK 39.7 Million and Ganizani Transport which borrowed MK 9.7 Million.

……’’KJ Trans ways which borrowed MK 172 Million, Maranatha Institute of Education, MK 83.9 Million, Consolidated Building Contractors MK 71 Million, CK Construction MK 698 Million and K Investment which owed MK 65.8 9 Million,’’…..reads part of the letter to the honorable Minister.The letter says it is alleged that the above listed companies are owned by people aligned to the then ruling Democratic Progressive Party [DPP] led by former President, Prof. Peter Mutharika and that his Government did not recover the loans because the borrowers were its supporters.

By Vincent Gunde

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