By Duncan Mlanjira
The Reserve Bank of Malawi (RBM) is reported to have not approved Mpatsa Holdings intention to acquire 49% shareholding in MyBucks Banking Corporation on the grounds that Mpatsa only has fixed assets which may not be liquidated quickly should there be need in the near future to provide additional support to the bank.
However, a statement from Mpatsa questions if this is a criteria for one to invest in a financial institution, saying it has never been applied to any of the existing bank’s shareholders.
“We further pointed out [during application for the shareholding acquisition] that should such a situation arise, there are several options available to us such as: dilution of shareholding; liquidation of assets; obtain financing etc but our pleas fell on deaf ears,” says the statement.
Mpatsa Holdings announce its plans to acquire the 49% shareholding in MyBucks Banking Corporation in June this year, subject to the approval from RBM Governor — the Registrar of Financial Institutions — and the offer from MyBucks was valid up to October 30.
“…it is therefore, with deep regret, that we are informing the general public that our wish to participate in this important sector of our economy has been dealt a death blow by forces that we have no capacity to fight.”
The company further calls upon relevant authorities to inculcate the Tonse government’s agenda of creating an enabling environment for local participation, saying this development, “in a way, is also a contradiction to the new administration’s policy of encouraging local empowerment and job creation”.
It says this should “not be just lip service, as has been our experience in this sad episode. It is our sincere hope that our regulatory authorities will be facilitators and not stumbling blocks to the noble cause of local participation in our economy.”