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Malawi’s AG Silungwe says former RBM governor’s contract was illegal

Attorney General Chikosa Silungwe

BLANTYRE-(MaraviPost)—Attorney General (AG) Chikosa Silungwe has faulted the former Secretary to President and Cabinet, Lloyd Muhara, for poorly drafting a contract of employment for former Reserve Bank of Malawi (          RBM) governor Dalitso Kabambe.

The AG’s legal opinion comes as Kabambe is demanding K2.3 billion from the central bank for unlawful and unfair dismissal.

In an application, filed on March 29 by lawyers T.F and Partners and classified as matter number IRC LL156 of 2021, Kabambe claims that, during his term as governor, he was entitled to remuneration of K30, 243, 023 per month, comprising K25, 697,042 as basic salary, K1,067,156.98 as transport allowance, K550,939.56 as domestic allowance and K2, 927,884.62 as board allowance.

However, Silungwe observes that the secondment of Kabambe was mishandled.

Silungwe faults the then chief secretary to the government Muhara for sidelining the office of the AG when drafting the employment contract for Kabambe.

In his legal opinion, he recommends that terminal benefits are payable to Kabambe under the contract of employment he entered into with the government as RBM governor.

“The current salary structure applicable to the executive management shall be used in calculating these terminal benefits,” he opines.

Silungwe has advised sitting secretaries to the President and Cabinet to be involving the AG’s office when faced with similar circumstances.

Apart from the issues of transport, domestic and board allowances, Kabambe is demanding other things.

Kabambe, who was fired on July 7 last year, says the K2.3 billion is his entitlement in form of salary and benefits for the remainder of his term from April 21 2017 to April 20 2028.

In addition, Kabambe is claiming pension benefits for the period between 1997 and April 21 2017, severance pay for serving Malawi Government, notice pay for serving Malawi Government, pension benefits for serving the Malawi Government and payment of terminal benefits and gratuity for the period between 1998 and April 2017.

He is also claiming the sum of K604,860,463.20 as damages for being stopped from finishing the terms; the sum of K1,814,581,389.60 as damages for a further five-year term that will have run from 2022 to 2028, and an order that RBM pay loss of motor vehicle BU 9606.

According to the application, President Lazarus Chakwera appointed Wilson Banda as RBM Governor on July 7 2020 when Kabambe’s contract was subsisting.

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