LILONGWE-(MaraviPost)-Busted! The Communication Workers Union of Malawi (COWUMA) has accused the Reserve Bank of Malawi (RBM) of shielding state-owned entities that have been defaulting pension remittances, while harshly penalizing private sector employers for the same offenses.
In a strongly worded statement, the union alleged that RBM, the country’s pension regulator, has failed to take action against serial defaulters including Malawi Broadcasting Corporation (MBC) and Malawi Posts Corporation (MPC), despite repeated complaints from employees and their representatives.
COWUMA also faulted RBM for unilaterally setting up a Pension Default Account at National Bank of Malawi without consulting key stakeholders, including employees, a move the union described as “dangerous and unacceptable.”
Allegations of Bias
This publication has seen the letter dated July 3, 2025, in which COWUMA formally lodged a complaint with RBM on behalf of MBC staff regarding unpaid pension arrears and non-remittance of current contributions. To date, the union says, there has been no meaningful response or resolution.
COWUMA General Secretary, Hamilton Delezah, accused the central bank of acting “unprofessionally” and with “double standards.”
“We have actually seen RBM acting hastily towards private employers that default on pensions, while turning a blind eye to government parastatals. Even when workers raise formal complaints, nothing is done,” said Delezah.
Concerns Over the Default Account
Delezah further questioned RBM’s decisio introduce the Pension Default Account wi proper consultations.
“Pension regulation is not the same as regulating financial institutions. Pension funds belong to members, and any decision that sidelines them is totally unacceptable. This is a recipe for chaos in the employment sector and puts workers’ retirement savings at risk,” he warned.
According to COWUMA, over 99 percent of pension fund members remain unaware of the Default Account and the implications it carries, exposing them and their beneficiaries to potential financial losses.
The union has since demanded that RBM immediately halt implementation of the account until thorough consultations and extensive public awareness campaigns are undertaken.
RBM is yet to comment on the matter.