Thomson Mpinganjira is now complaining that MSB made a loss of K2.4 billion compared to K249 million profits in 2013. Why is he making these statements now and not before he bought the Bank?
Just a few days after closing the deal in the cover of darkness, Thom Mpinganjira, FDH holding’s Chairperson, the 75 percent shares buyer of Malawi Savings Bank (MSB) was insulting Malawi’s Parliament, Civil Society Organizations (CSOs), and activists that jealousy was the main reason which perpetuated their anger to try and stop the sale of the MSB.
Mpinganjira made these statements responding to Times Television Exclusive Program on Saturday, July 11, 2015 which the host, Brian Banda posed critical questions regarding to his courage to buy the bank despite numerous protests from Parliament, CSOs and activists against MSB sale.
The FDH holdings Chairperson responded majestically questions ranging from his connection to the ruling DPP elites and leadership, financial muscle in turning the bank loses to profit making entity, job security for MSB’s employees, the status of toxic loans and legacy left to Malawians.
So it is noteworthy when FDH Financial Holdings Limited says it believe that there was mismanagement of funds at Malawi savings MSB .This follows recent financial reports showing that that bank in 2014 made K2.4 billion loss after tax different to the reports that the bank made similar profits.
It proves that his critics were right after all. When acquisitions of this magnitude are being contemplated, the books need to be fully audited. Thomson Mpinganjira appears not to have done this and therefore he cannot be crying now when he did not do his due diligence.
“This contradicts earlier speculation in the media that the bank had posted a profit of K811 million as at 31st December 2014?, said Mpinganjira.
To this effect Mpinganjira said results indicate a possibility of systematic financial mismanagement and fraud.
Why would he be finding this now and not before okaying the sale? He needs to answer to his board for this. Many in parliament had demanded a full accounting before the sale went through as is the normal practice.
“We will therefore conduct a forensic audit of the bank to ensure that if any malpractices occurred they are brought to light. We will ensure that we protect the resources of this bank and vigorously pursue anyone found to have carried out any malpractices and criminal activities that were aimed at stripping the bank of its assets”, said Mpinganjira.
He then described people who have been giving our information about the bank performance before it was sold as liars who wanted to paint a rosy picture of the bank status when things were really bad compared to the picture FDH had prior to buying of the bank.
This is self-serving on the part of Mpinganjira. Of course in any transaction of this magnitude each party presents their best face. It was the responsibility of Mpinganjira to look at the books closely. The forensic auditing should have been done then not now. Why was in such a rush?
“People who have been releasing information about Malawi Savings Bank MSB have been lying, I mean lying, you have seen in the newspapers, in the various media even in parliament they said this is a profitable bank.
“The minister of Finance asked at the signing ceremony that if people are saying this is a profitable bank and yet everybody agrees the bank is in trouble it must be sold, how you can have both, a profitable bank and a bank that is in trouble at the same time.
“Secondly this bank has never made profit, they were just cheating through the results of 31st December 2014 which came out on March 31, 2015 and
I want to tell Malawians the results are shocking, the purported profits were being publicized by the people who wanted the bank not to be sold.
“Now that the results are out you reporters should go back to those people and ask them where were they getting such information”, lamented Mpinganjira.
The recorded losses according to Mpinganjira will mean slow progress in recapitalization of the bank because during buying they were told to inject K3.2 billion but with the discovered K2.4 billion loss the recapitalization will need at least K6.3 billion which he said is twice the original estimate which was based on inaccurate accounts information presented to FDH.
If this is the Management style he is going to bring to the Bank, Malawians should sleep un-easy. He should be fired before he causes more harm
