A 2020 decision to reduce executive salaries at the Reserve Bank of Malawi has triggered a costly compensation dispute, according to Malawi24. The Industrial Relations Court ruled the salary cuts unlawful, allowing former senior officials to secure massive payouts. This includes a reported K1.5 billion settlement for former Deputy Governor Henry Mathanga, creating a significant financial burden for the central bank.
In the commercial banking sector, the Malawian Judiciary has concluded its assessment of a K1.1 trillion compensation claim filed by the defunct Finance Bank Malawi, Nation Online reports. The High Court has directed the bank's legal team to file written submissions within seven days. Final oral arguments are scheduled for September 28, with a formal court ruling anticipated in October.
Meanwhile, the Malawi Gaming Board is facing public scrutiny following allegations that sports betting companies are rigging their systems to exploit local gamblers. According to Malawi24, critics have accused the regulatory body of failing to oversee the industry effectively, alongside claims that some officials are pocketing kickbacks to ignore the malpractice.
Update: The National Oil Company of Malawi (Nocma) has admitted that a K700 million payment was diverted to hackers, Malawi24 and Nation Online report. Scammers hijacked a supplier's email and redirected US$403,605 to a fraudulent Bank of America account in April. Nocma argues it should not be forced to pay twice because the supplier's email was compromised. Following the scandal, the government fired Nocma chief executive officer Emmanuel Matapa with immediate effect, and the Human Rights Defenders Coalition is now demanding a criminal investigation into the officers who approved the transaction.