Minister of Finance Economic Planning and Development, Goodall Gondwe, Thursday said government was not putting Malawi Savings Bank on sale, but that they were seeking interested investors to partner with.
Addressing members of the press in Lilongwe, Gondwe said government had decided to withdraw from being dominant shareholder of the bank to improve the operations of the financial institution.
“The interest is to run the bank in a more efficient way,” said Gondwe. “All the countries out there did the same with their postal savings banks and they are doing fine.”
The minister refuted media reports that the bank was going to be sold at K8000 million and he disclosed that First Discount House (FDH) had offered K4.9 billion for 79 percent of the bank’s shares.
Gondwe said he had had meetings with parliamentarians on the matter but he emphasized that the lawmakers had nothing to do with the issue.
According to Gondwe, the discussions and proceedings regarding the partnership of the bank is supposed to be through by March 31st, 2015.
“The Registrar has given us up to 31st of this month (March)or else we risk the closure of the bank,” he said.
Recent report from Receive Bank of Malawi revealed that if the bank will not be sold by June it risks closure as it has accumulated huge loans.
But the decision to sell the Bank by government has faced lots of resistance from various stakeholders, saying doing so will be doing injustices to Malawians.
As this was not enough, a grouping calling itself concerned citizen applied for an injunction from High Court in Blantyre to stop the sale of the bank but the High Court denied the claims.