Africa > East Africa > Malawi > DPP Scraps Off Mk4.6 Billion Mulli Loan, Malawi

Malawi: DPP Scraps Off Mk4.6 Billion Mulli Loan, Malawi

2015/04/26

Government, through Ministry of Finance, has made a decision to write off MK6 billion loan that Democratic Progressive Party financiers and sympathisers do owe the Malawi Savings Bank.

"I write to inform you that the government has resolved to hive off MSB toxic asserts amounting to MK6, 074,773, 871.70," reads a letter to MSB purportedly written by government's Chief Secretary, Ronald Mangani, which Malawi24 has a copy of.

In an extra letter dated 20th April, Mangani instructs Charles Chuka, governor of the Reserve Bank to bailout MSB as a way of clearing the loans that Mulli Brothers owes the public company.

"As you are aware, the Malawi Savings Bank Limited which Government wishes to dispose off, had toxic assets amounting to MK6, 074,773, 871.70... Government has therefore taken a decision to clear these toxic asserts through an issuance of an interest bearing promissory note," reads the letter indicating government had finally given up on saving the bank but was hell-bent on saving Mulli Brothers.

Mulli a well know DPP financier owes the Bank MK4. 6 which government is redacting. Ironically, government plans to sell the Bank to Mulli at meagre K800 million a decision which has attracted strong opposition from members of the general public.

Malawi Parliament objected to the sale of the bank but government has so far by-passed the law makers.

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