Government has sold Malawi Savings Bank (MSB) under controversial circumstances. As MPs were busy discussing and passing a resolution not to sell the bank, government on the other end was signing papers to transfer the bank to FDH. On the face, it may seem that the issue is dead and buried, but it is not. Given the manner the bank has been sold and how vehemently people, including opposition MPs have opposed it, the issue of MSB is far from over. There are several MPs who are lawyers. Let them put their heads together and challenge the sale in court.
If that fails, Malawians have to wait until DPP is ejected out of power. They can drive comfort from the fact that no party stays in power forever; presidents, governments and politicians come and go. So, if the legal route fails, the next government should nationalise it. It has to revert to the people.
The whole concept of selling government companies is flawed. For a poor country like Malawi, these public institutions are important for service delivery and source of revenue for national development. We have seen how government officials are running around to negotiate for aid and financial support from the IMF/ World Bank and the donor community or looking for foreign investors.
Government is also borrowing heavily through treasury bills to raise money. It is failing to mobilise local resources through public institutions like MSB. An institution like MSB can assist in bringing the much-needed money rather than overburden the few Malawians with numerous taxes. Banking is one of the most lucrative sectors. It is equally mind-boggling that government should settle for a 25 percent share. Is this different from the Kayelekera mine debacle?
The issue of MSB is most unfortunate because people and MPs refused to sell the bank, government should not have disregarded their wish. The few experts who were consulted and misled President Mutharika to sell MSB forgot to tell him that governments around the world are now fully or partially nationalising banks in the wake of the 2008 world economic crisis. They are embracing Keynesian economics as opposed to neo-liberalism which is producing contradictions and causing misery in society. One can see how neo-liberal policies have led to corruption, bribery, greedy, selfishness and loss of jobs since 1994.
And who said government cannot run a business? The problem with many African leaders is poor governance and pursuing selfish motives. They interfere in the operations of public institutions. When things do not work out, they blame institutions. Yet they create the problems themselves. Politicians and their cohorts mismanaged MSB and they want Malawians to believe that the bank is not viable.
Malawi has lost a lot of State-owned enterprises (SOEs) because of leaders who do not have the welfare of people at heart. During Bakili Muluzi’s era, government sold many SOEs. This has contributed to poverty and lack of access to services. One can see how privatisation of Malawi Railways has killed the rail transport. In future, government should nationalise some companies for the benefit of the people. MSB should be one of them. n
