The selling of the Malawi Savings Bank (MSB) led by the Finance Minister Goodall Gondwe while it has angered the opposition parties MCP and PP leadership, is a move for unknown reasons to Malawians condoned If not encouraged by both the World Bank and IMF.
It has been reported that, Malawi Congress Party (MCP) MP for Dowa East Richard Chimwendo Banda went as far as accusing Minister of Finance, Economic Planning and Development Goodall Gondwe of being in “contempt of Parliament” for proceeding to sell the hitherto government wholly owned Malawi Savings Bank (MSB) after the House had recommended suspension of the sale.
Two weeks ago in a very unprecedented move, the World Bank office in Malawi lambasted the remarks the Civil Society Organisation (CSOs) in Malawi made questioning the bank and International Monitory Fund (IMF)’s real interests on the sale of Malawi Savings Bank (MSB) saying neo-colonialism tendencies to a sovereign state like Malawi were not welcomed.
Through the press conference which Billy Mayaya (Human Rights Defender), Bright Kampaundi and Fryson Chodzi (Forum For National Development), organized on Saturday, June 6, 2015 in the capital Lilongwe whose aim was to respond the President Mutharika’s suspension of MSB sale made, also attacked the support of World Bank and IMF motives behind the backing of the sale, saying the two financial bodies were giving the leadership of this country direction on the matter beyond their mandate.
However, in an exclusive interview with the Maravi Post on Wednesday, June 10, 2015 in the capital Lilongwe, World Bank Communications officer, Zeria Banda for Malawi’s Office, trashed the allegation of her institution dictating Malawi on financial matters saying the bank’s role on countries was advisory for fiscal discipline.
The irony of ironies, Normally Western donors and institutions that they control such as IMF and The World Bank have been on the side of CSO’s against Malawi governments starting with the drive to multiparty rule in Malawi.
Peter Mutharika and Goodall Gondwe pulled the wool over the MCP and PP members of parliament by promising to hold the sale only to get their budget sail through parliament. Soon after the budget the Malawi Opposition was surprised with the impromptu signing ceremony at the Ministry of Finance, Economic Planning and Development Headquarters in Lilongwe, where government gave up 75 percent of its stake in MSB for K9.5 billion ($21.1 million) to FDH Holdings Ltd (FDH Bank).
People knowledgeable about the MSB charter believe that Peter Mutharika who went against recommendations of the Budget and Finance Committee of Parliament whose resolution, adopted on Wednesday, that government should recapitalize the bank to enable it meet regulatory requirements, is on solid ground.
The same knowledgeable sources said impeachment talks as a result of the hasty sale of MSB, are just that, talk they will not get anywhere. The lawyer who is familiar with impeachment statute basically said Dowa East Richard Chimwendo Banda is just blowing steam. His call will not go anywhere.
The opposition MCP and PP parties are so incensed that some are looking to see if they can challenge the sale in court.
Social Media is also divided with supporters happy that Peter Mutharika pulled the trigger on the sale, those in opposition claiming this is another cashgate and calling Peter and Goodall ‘Mbabva’ meaning thieves.
