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Mwanamvekha gets k100m windfall

The Industrial Relations Court (IRC) in Blantyre on Tuesday ordered Malawi Savings Bank (MSB) to pay K100 312 273.58 to its former chief executive officer (CEO), who is now Agriculture, Irrigation and Water Development Minister, Joseph Mwanamvekha.

On paper, it is MSB, to settle the payout  but the responsibility lies in the hands of privately-owned FDH Bank, which bought the then wholly State-owned MSB and the two banks officially became one on July 1 2016.

The court, presided over by IRC chairperson Thomson Ligowe,  who last week was promoted to a High Court judge, said in his order that Mwanamvekha’s contract of March 1 2007 with MSB had not been terminated when he was appointed Secretary to Treasury (ST) on November 5 2009.

Sought court redress:
Mwanamvekha

The court observed that the contract was also not terminated on February 29 2012, when it should have been terminated due to expiry of time, such that it was tacitly prolonged.

Mwanamvekha went to pick up the job as ST on secondment, following appointment made by former president Bingu wa Mutharika, meaning he opted to continue enjoying salary and other benefits from MSB.

The former ST was later caught up in the political web, following the death of Bingu in April 2012, after Joyce Banda, who took over power following constitutional order, fired him in less than a week after she took office.

Banda, after getting rid of Mwanamvekha as ST, immediately appointed Ian Bonongwe as MSB CEO, a position Kayisi Sadala held in acting capacity when Mwanamvekha went to Treasury.

Mwanamvekha’s contract at MSB was not terminated, but he could return to the bank as Banda had already replaced him, bringing the current court matter where he claimed salaries and benefits up to the time his contract should have expired.

For the period calculated, the IRC awarded Mwanamvekha K44 876 413.89 in salaries, K24 686 027.64 in housing allowance, K16 051 222.40 gratuity, K440 000.00 for prepaid ground phone units, K1 655 182.98 for medical scheme contribution and K528 000.00 for a gardener and a cook.

Other awards that brought the whole amount to K100 312 273.58 are K880 000 for water and electricity bills, K769 000 for DStv subscription, K216 666.67 for leave grant, K8 779 760 for fuel and K1 430 000 for hiring of a motor vehicle.

According to the court, apart from other benefits, Mwanamvekha’s last basic salary was K1 593 000 in April 2012.

Ted Roka, Mwanamvekha’s lawyer, said in an interview on Thursday he was happy with the outcome, adding that they expected the respondents to sort out his client’s well-deserved payout without hesitation.

Patrice Nkhono, lawyer representing FDH Bank, said in an interview on Friday he was yet to read the court order, and get further instructions from his client on the way forward.

“I’m in Lilongwe. I have just heard about the outcome from my colleague. I’ll have a fine picture when I get to Blantyre and consult my client,” Nkhono said.

Mwanamvekha contested and won in May 2014 tripartite elections as Chiradzulu South member of Parliament and he was hired into Peter Mutharika’s first Cabinet. He remains one of the ministers in Democratic Progressive Party (DPP) that have held key ministries as he is now Minister of Agriculture, Irrigation and Water Development after working as Trade and Tourism Minister. n

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2 Comments

  1. Now we all know why Mr Thom Ligowe has been promoted to be the high court judge at the expense of the most qualified candidates…………
    There is a general election coming up in 2019 and the DPP party has to find means of raising the required campaign funds somehow………..

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