Reserve Bank of Malawi executives to receive compensation after unlawful salary cuts

The Industrial Relations Court (IRC) has ruled that the Reserve Bank of Malawi (RBM) unlawfully reduced executive salaries in 2020. The court found that the bank could not unilaterally slash remuneration that had already become a contractual entitlement following a 2018 salary structure approved by the RBM Board.

The ruling, stemming from a challenge by former Director of Administrative Services Clemence Chinkono, has paved the way for significant compensation claims. Reported payouts to various former and current senior officials range from approximately MK800 million to MK1.5 billion.

Among the affected individuals are former Deputy Governor Henry Mathanga, Grant Kabango, William Matambo, and several others. The judgment clarifies that recent large payments to officials, such as a reported MK1.5 billion to Mathanga, are part of a broader compensation exercise related to this legal dispute rather than isolated settlements.