Govt trashes FDH demands on MK1.1 billion refund on MSB sale

The government of Malawi has quashed claims by FDH Holdings Limited demand of K1.1 billion to be paid back from the amount it paid for Malawi Savings Bank (MSB) shares on grounds that the company was overvalued.

Minister of Finance and Economic Development Goodall Gondwe revealed this on Monday when he was responding to the concerns raised by Lilongwe South legislator Peter Dimba.

Dimba noted that it is unfair to expect the taxpayer to foot over K1Billion to cover costs on pretext that MSB was overvalued.

He observed that the K1.1 Billion refund claim to Treasury by the bank from the poor taxpayer is an example of poor decision-making and unacceptable.

In his speech, Gondwe stressed that Capital Hill does not owe FDH Bank anything as ample time to conduct due diligence was done before the sale of MSB to the bank.

“We don’t owe any money to FDH as before the sale we had due diligence done which means they were quite satisfied after the value of the bank was stated”

“To come back after they have already done the due diligence does not make sense to us” Observed Gondwe.

FDH’s claim through the Public Private Partnership Commission comes almost a year after buying 75% of shares in the wholly owned state bank in a K9.5 Billion package on July 2 last year.

The sale of MSB attracted mixed reactions with others accusing government of robbing Malawians.