AG rejects Jumbe’s K584m demand from Malawi govt: ‘No contract on bank job’

Attorney General Kalekeni Kaphale has rejected a claim from former minister of Finance Friday Jumbe of about K584 million as compensation for ‘unfair dismissal’ from the yet-to-be-established Malawi Development Bank.

Jumbe: Demands K584 million from  Malawi government
Jumbe: Demands K584 million from Malawi government
Attorney General Kaphale: No contract
Attorney General Kaphale: No contract

Jumbe was fired from the post of chief executive officer (CEO) at the bank and is seeking damages for ‘unfair dismissal’.

Finance Minister Goodall Gondwe said last Friday in parliament that Malawi has put on hold plans to establish the Development Bank.

Gondwe said some development partners advised government to establish a development fund “since this would part own development projects and be involved in their management”

Jumbe – who contested in the last presidential election under the New Labour Party but later “dissolved” the party to support the ruling Democratic Progressive Party (DPP) – had already been paid K14 million for two and half months as CEO.

He is now claiming K584 million in damages for terminating his job, according to a letter dated April 10, 2015 by a private practice lawyer Joseph Kamkwasi to Attorney General.

The letter says Jumbe had been given a five-year contract to head the bank.

But Attorney General Kaphale said there was no formal written contract between Jumbe and government on the bank job.

Kaphale asked Jumbe to send him the “so-called contract” and further also “address whether the registrar of financial institutions [the governor of the Reserve Bank of Malawi] had vetted your client as a fit and proper person to manage the bank better as per Financial Services Act and the direct on fit and proper person.”

Kamkwasi in his response letter said: “It is the duty of the employer to follow through the provision of Section 27 of the Employment Act. It is unconscionable for the employer who has violated Section 27 of the Employment Act to run away from responsibility and contractual on the basis there is no written contract. It is the duty of the employer to follow the provision of the Financial Services Act and direct of fitness and proper person our client is yet to be advised.<

“Our client knows he has a contract with Malawi Government. He was paid K11 710 360.46 for working for your client in the first two and half months.”

On the K14 million Jumbe was paid, Kaphale said the money was  for“ some job” done.

Finance Minister Gondwe told parliament that the formation of the development bank “has been delayed” in order to give “full room” to the consultative process, saying parliament will be duly informed about the progress.

Government sees the development bank as a tool to help medium and large-scale entrepreneurs to access capital as it is problematic for them to get loans from commercial banks.

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kazeze
8 years ago

Amalawi, chenjelani ndi Jumbe, ndi mbava imeneyo.

kheza
kheza
8 years ago

Nde mudziti misewu siikukonzedwa chifukwa tilibe ndalama zoona? Kodi nde kuti amene ali entilted kumadya ndalama zathu ndi ndani? This is tax payers money and yet mukudya nokhanokha! Not fair

Njalayamalamuchiuno
Njalayamalamuchiuno
8 years ago

With such shortcuts taking place at such a high level, one wonders whether the public and Financial management reforms are on course! This does not present the right message of doing business. We need to practice what we preach for a better impact.

OMEGA BEMA
OMEGA BEMA
8 years ago

I don’t mind if jumbe suffers coz he made us millions of malawians to suffer more ,,,i hate him

Tiyanjane
Tiyanjane
8 years ago

Times TV please re broadcast your interview with Dr. John çhisi. It may help Mr. Jumbe on how to serve amidst deep poverty.

Hoho..chatoloma
8 years ago

“Some job” meaning what Mr AG?

sayimoni bayisikolo
sayimoni bayisikolo
8 years ago

These people in politics how found a very lucrative business in compensations.They are playing tricky games to swindle Malawian tax payer in this way,while are a Malawian tax payer cannot even afford a decent meal.Wake up my fellow Malawians.Time for swindling each other in this way is over.He stole alot from admarc during the tenure of his thief friend Muluzi.They think good life was only meant for them.Stay away from my tax.Its meant for healthy and education in Malawi not bankrolling some crooks.

wakukayawakukaya
8 years ago

Ku Nyasaland kumeneko ziliko.

makito
makito
8 years ago

Business unusual: he was promised a lucrative post hence the injunction. By word of mouth old Dada Gondwe instructed finance to issue a contract for him to head the bank. However the President later came to know that this guy was not actually solvent, had loans with our famous msb. Then it fell through. The 11m was paid to silence him, but the lawyer convinced him he could get more. That is how we spend tax payers money. This Goodall is a liability to our nation.

Mwamfunsa
Mwamfunsa
8 years ago

Half million, tikupatseni, mudye inu nokha basi? Nde nkumati mufuna kulamulira dziko? Hahaha koma Ku Malawi nkosangalatsa kwambiri. That’s selfish, stop!

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