FDH says it has struggled with unforeseen challenges in the process of taking ownership of Malawi Savings Bank (MSB) and merging it with its [FDH] operations, contrary to popular public opinion over the outcome of the transaction.
FDH Chief Executive Officer, Thom Mpinganjira, said as the new shareholder of MSB, which was previously owned by the Malawi Government, they had to deal with new challenges in the process of integrating the operations of the two banks that were not anticipated prior to the acquisition period.
In an interview on Times Exclusive, a programme that airs on Times Television, Mpinganjira confessed that the merger presented new challenges for FDH which required commitment to ensure that the integration process was implemented successfully.
“It has been very tough, but I am happy to say we have sailed through very difficult waters and as I am talking today, FDH and MSB are now merged and we are one bank,” said Mpinganjira.
According to Mpinganjira, job cuts became inevitable in the process of integration despite FDH making an assurance of job security for its staff before the merger was consummated.
“Our first impression was that everything was in place but we faced new dynamics when the acquisition process was complete,” Mpinganjira said.
Mpinganjira said FDH made new discoveries on the operations of MSB which he claimed even government was not aware of when it owned majority stake in the bank.
“If I recall, I made the statement when we had a certain position and impression about what we were buying. There is a lot that we have discovered, unfortunately there was a lot that was happening in that bank that even government, the shareholders, did not know,” said Mpinganjira.
Meanwhile, Mpinganjira has since rated the local economic landscape, as still challenging for doing business.
He cited, for instance, the high inflation rate which according to Mpinganjira continues to induce pressure on the bank borrowing rates, currently hovering around 40 percent.
Leave a Reply