FDH Financial Holdings Limited says it believe that there was mismanagement of funds at Malawi savings MSB .This follows recent financial reports showing that that bank in 2014 made K2.4 billion loss after tax different to the reports that the bank made similar profits.

In a financial statement released today FDH Financial Holdings Limited Chief Executive Officer Thomson Mpinganjira said MSB made a loss of K2.4 billion compared to K249 million profits in 2013.

“This contradicts earlier speculation in the media that the bank had posted a profit of K811 million as at 31st December 2014″, said Mpinganjira.
To this effect Mpinganjira said results indicate a possibility of systematic financial mismanagement and fraud.

“We will therefore conduct a forensic audit of the bank to ensure that if any malpractices occurred they are brought to light. We will ensure that we protect the resources of this bank and vigorously pursue anyone found to have carried out any malpractices and criminal activities that were aimed at stripping the bank of its assets”, said Mpinganjira.

He then described people who have been giving our information about the bank performance before it was sold as liars who wanted to paint a rosy picture of the bank status when things were really bad compared to the picture FDH had prior to buying of the bank.

“People who have been releasing information about Malawi Savings Bank MSB have been lying, I mean lying, you have seen in the newspapers, in the various media even in parliament they said this is a profitable bank.

“The minister of Finance asked at the signing ceremony that if people are saying this is a profitable bank and yet everybody agrees the bank is in trouble it must be sold, how you can have both, a profitable bank and a bank that is in trouble at the same time.
“Secondly this bank has never made profit, they were just cheating through the results of 31st December 2014 which came out on March 31, 2015 and

I want to tell Malawians the results are shocking, the purported profits were being publicized by the people who wanted the bank not to be sold.

“Now that the results are out you reporters should go back to those people and ask them where were they getting such information”, lamented Mpinganjira.
The recorded losses according to Mpinganjira will mean slow progress in recapitalization of the bank because during buying they were told to inject K3.2 billion but with the discovered K2.4 billion loss the recapitalization will need at least K6.3 billion which he said is twice the original estimate which was based on inaccurate accounts information presented to FDH.