We settled K24m MSB loan—Fincoop
Fincoop Savings and Credit Cooperative Limited says it paid back in full the K24 million loan it owed previously wholly State-owned Malawi Savings Bank (MSB) despite the company’s name appearing on the list of K6.1 billion defaulters.
In an interview in Lilongwe on Tuesday, Fincoop general manager McMillan Nankhonya said his organisation settled the loan on June 30 2015, days before government sold an 80 percent stake of the bank to FDH Financial Holdings Limited.
He said Fincoop paid K24 million, which wast the principal of the MSB loan following an agreement with the bank that the accrued interests should not be paid.
Fincoop was one of the companies that failed to repay K65 million with interest, which was part of the K6.1 billion toxic assets that government paid off through promissory notes.
In a bid to recover the money, government set up MSB Debt Collection Company to collect the money from the individuals and companies that were bailed out by government.
Nankhonya said Fincoop paid on its own accord after the agreement with MSB without any intervention from the new company that was set to collect the money.
In a letter to MSB dated June 30 2015, Fincoop indicated that they paid by cheque number 886 370 the sum of K24.3 million as payment towards its principal balance. MSB on the same day acknowledged receipt.
FDH Financial Holdings Limited head of marketing Sobhuza Ngwenya confirmed that Fincoop paid back the loan and that the proceeds were given to government.
But chairperson of board of directors for MSB Debt Collection Company, Chadwick Mphande, yesterday said his organisation has no information relating to the payment Fincoop made to MSB.
“I do not have any records on the payment from Fincoop. So far, those are the figures we have,” he said.
In April 2015, government paid K6.1 billion promissory notes to enable MBS knock the toxic loans off its books to prop up its value before the bank was sold off to FDH bank.
MSB failed to recover K6 074 773 871.70 from 13 individuals and companies, at the time government was selling off its 80 percent stake.
This prompted government to bail out the individuals and companies to facilitate the smooth process of selling the bank.
Fincoop loan reached K68 034 537.28 due to the accrued interest.n
