PPPC says no panic over MSB changes
The Public Private Partnership Commission (PPPC) and Malawi Savings Bank (MSB) on Friday called for an impromptu news conference to allay depositors’ fears following revelations that government is selling part of its stake in the bank.
On Friday, The Nation, revealed significant changes at the wholly-owned State bank whose shareholding would be up for grabs and the purported lack of leadership at the financial institution.
The paper revealed that government has seconded the bank’s chief executive officer Ian Bonongwe to the Office of the President and Cabinet (OPC).
And in a December 22 2014 letter, Secretary to the Treasury (ST) Ronald Mangani ordered the Finance and Audit Committee of the MSB Board, through its chairperson Jimmy Lipunga, to take over the daily operations of the bank.
But two days after the ST’s directive, Lipunga tendered his resignation from the board effective December 31 2014, fearing conflict of interest as it is the PPPC that will facilitate the bank’s capitalisation process.
But at the news conference on Friday, Lipunga, who is PPPC chief executive officer, assured depositors and the public that there was no leadership crisis at the bank.
Lipunga said two other State-owned financial institutions, Indebank Limited and Pride Malawi Limited, were going through the same recapitalisation process to comply with Basel II requirements as directed by Reserve Bank of Malawi (RBM) in relation to capital adequacy.
Lipunga said the recapitalisation was good news because it would strengthen the financial institutions involved through injection of new capital preferably by a strategic equity partner.
He said: “This process will be implemented through strict adherence to the Public Private Partnership Act and the Companies Act and other legal and regulatory frameworks.
“With reference to an article that appeared today in the media, the directors and management of Malawi Savings Bank would like to assure all depositors and the general public that the board and management are fully in control of the bank.”
He said the board was working with the PPP Commission and the regulator to ensure that all assets and depositors funds were safeguarded.
Lipunga, who was flanked by MSB acting board chairperson Mandala Mambulasa and MSB secretary and legal adviser Videlia Mluwira, said the public would be updated on the progress of recapitalising at the financial institutions.
