The reinstatement of Reserve Bank of Malawi (RBM) Deputy Governor for Economics and Regulation Henry Mathanga has stirred debate among legal and social commentators after he quit in 2021.
Based on a consent order dated January 13 2026, Mathanga will be treated as if he had never been dismissed and shall be entitled to recover any benefits lost during the period of unemployment, dating back to 2021.
But legal and social commentators have argued that if the original dismissal was unlawful, the current outcome underscores why public institutions must exercise caution, fairness and legality in disciplining senior officials.
Further, they state that if the inquiry and circumstances that led to his exit were legitimate and lawful, then the consent order raises far more troubling governance concerns.
Issued by the Industrial Relations Court in Lilongwe, the order shows that Mathanga was employed as Deputy Governor at RBM from April 14 2020, but resigned on March 26 2021 due to “unfair and hostile treatment”.
He later sued RBM for constructive dismissal.
However, the order says parties in the matter have engaged in discussions and negotiations regarding the subject matter of the claims and have reached an amicable resolution.
Reads the order: “That the applicant be and is hereby reinstated as Deputy Governor Economics and Regulations [Grade 11] at the Reserve Bank of Malawi effective 1st January 2026.
“That the applicant shall be treated as if he had never been dismissed and shall be entitled to recover any benefits lost during the period of unemployment.”
On the benefits lost during the period of unemployment, Mathanga’s lawyer Powell Nkhutabasa said the central bank will decide if there are any such benefits.
He said: “That order is to reinstate him, like you left through constructive dismissal, and your employer now agrees that he was wrong and reinstates you.
“So, you are being treated as if you didn’t leave. In that case, if he was missing out on anything, then the bank will have to provide that. The bank and Mr. Mathanga would know better on what that is.”
There was no immediate response from Mathanga and Attorney General Frank Mbeta on the said benefits.
Commenting on the matter, private practice lawyer Benedicto Kondowe said if the original dismissal was unlawful, the current outcome underscores why public institutions must exercise caution, fairness, and legality in disciplining senior officials.
Mathanga, who joined RBM in 1984, was sent on forced leave in August 2020 and prior to the leave, RBM had informed him that government was terminating his contract, according to court documents.
Later in March 2021, the IRC stopped RBM from effecting a pay cut on Mathanga’s monthly salary of K22 million to around K10 million after the then governor Wilson Banda reduced RBM management executives’ salary by around 50 percent.
Mathanga resigned in March 2021, but former president Lazarus Chakwera wrote to Mathanga on June 24 2021, suspending him over allegations of financial misconduct.
