MSB puts Mulli Brothers assets on sale
Malawi Savings Bank (MSB) has put on sale Mulli Brothers assets worth about K3.3 billion.
The state-owned bank is currently embroiled in controversy following government’s decision to sell it.
The sale has faced widespread opposition, a situation inflamed by the government’s recent move to pump into the bank K6 billion.
Government’s argument in injecting the K6 billion into the bank through promissory notes is that it intends to improve the bank’s liquidity position to preserve depositors’ funds.
But the move has been seen as government’s way of effectively bailing out some individuals and private companies who have failed to service their loans with the bank.
However, government argues that the move is a way of institutionalising the process of recovering the bank’s bad debts, a process to be effected by an independent company.
Mulli Brothers Limited (MBL) owes the bank a reported 83 percent of the bad debts amounting to K4.97 billion.
But amid the controversy over the bank going into private she said.
MSB has been pursuing Mulli Brothers Limited (MBL) over the loans since December 2012 when it filed the case with the High Court (Commercial Division) in Blantyre.
The court ruled that MBL had to repay the loan that had risen to K3.2 billion at that time.
MBL committed to pay it in 60 months in installments of about K82 million per month.
However, the company went back on its word and obtained a stay order against the ruling of the High Court.
In November last year, MBL sought an extension of the order, until the matter was brought before Judge Chinangwa in February.
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