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

  1. kazeze says:

    Amalawi, chenjelani ndi Jumbe, ndi mbava imeneyo.

  2. kheza says:

    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

  3. Njalayamalamuchiuno says:

    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.

  4. OMEGA BEMA says:

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

  5. Tiyanjane says:

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

  6. “Some job” meaning what Mr AG?

  7. sayimoni bayisikolo says:

    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.

  8. Ku Nyasaland kumeneko ziliko.

  9. makito says:

    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.

  10. Mwamfunsa says:

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

  11. Is mr jumbe a free Manson?he dresses like one.

    1. Inhumane Rights Activist says:

      What;s wrong by being a Free Mason?

  12. Patriot says:

    Paja uyu ndi uja anakatenga injuction ma masankho oakauba aja?

  13. makwinjaishmael says:

    Tamapelekani Chitsanzo chabwino apa.Ajumbe mwatani?. Ndalama zonsezi boma likupatseni inu nokha zoona.Atati Mulungu avomereze kut mudzakhale president mudzatisunga inu?. Tikondeni anzanufe, tikuvutika ndimisonkho yet ndalama zake mumangogawana nkumaseweretsa. Chonde tikondeni, ndife ntundu wanu ndithu.

  14. mbani says:

    Why always Rushing into this employing akatwala bakili group

  15. tombolombo says:

    Shupiti!!!!!!!!!!!!,

  16. MASIKU ANO ANTHU AKUSAKASAKA NJIRA ZOKOLOLERA NDALAMA KU BOMA ETI?

  17. chivwamba says:

    Cashgate. Please institute an inquiry. They are revealing one another. It aint started yet. More will come out.

  18. wanangwa says:

    This is a sick and cursed country.

  19. wanangwa says:

    Wasting money. K14 million for doing what?

  20. wanangwa says:

    Why is Malawi always listening to donors?

  21. Mbwiye says:

    This was part of political agreements. He was told to desolve his party and be given a post. So MK14.0m is just pea nut for these politicians. Koma ine kumalipira mankhwala kuchipatala chaboma chimene chimagwilitsa ndalama za msonkho wanga

  22. Zakuba basi. Was he being paid for dissolving the new Labour Party? These governments from 1994 have been careless.

  23. all-i-can-say says:

    Koma ndiye banana republic!! Greed in Malawi is abound and scary. No wonder our country is poor as everyone wants something for nothing. Shame on our so-called leaders.

  24. kenkkk says:

    I don’t know where this govt is taking us. The most stupid and corrupt govt I have ever seen.

    All this money from dubious claims is being shared amongst themselves.

    Tell us exactly what job he did to deserve 14m for just 2mth work. You kalekeni, please talk like you are the AG of the country. Don’t tell street talk.

  25. mwenye we malawi says:

    Ndiye zimenezi mbatata zokhwima amanena Abusa Helen Singi aja pama debate. Koma aMalawi kusamva. Mbava zatitengetsa. Ativinitsa gule chaka chino. Mbava zilipilana ma billions ndi ma billions mpakana chimaganga cha njala ya chaka chino saatha kugula, koma ndalama zili zathu.

    Kodi Jumbe walipila msonkho pa 14 millioni walindila? Kapena akuluakulu ku MRA anawa nyemera kale?

  26. Harry Pongolani says:

    Opusa ndi aku Treasury. Staff salaries in the government are not prepared at the State House nor at the Reserve Bank. The Ministry of finance led by the old man Goodall Gondwe knew they were paying someone who had not rendered services to government, but they chose to keep quite instead of being whistle blowers. I don’t blame who are speculating that the payment Jumbe received was a reward for taking an injunction during the election because the way Jumbe came in shocked everybody when he was the last in the race and there were no indications that he would pull over to position 2 or 3.

  27. Jelbin mk says:

    According to employment procedures; an employee is deemed permanent if he/she has worked at the company, department, organization and any other place including at a household for more than three months and that’s when an employer is obliged to sign a contract with an employee if the employer ignores this he or she will be doing so at owner’s risk you won’t have an excuse that I didn’t sign a contract with my employee because it is the duty of an employer to ask an employee to sign a contract not an employee asking an employer. Now in this case Jumbe has goofed because the government will say he was on a probation period which is legally recognized as three months in labour acts.

  28. 5555 says:

    IG !! you are very stupid!! Why the government had paid him MK14m for two months without a written contract?? Chitsilu wamva!!

  29. Nkalapwaga says:

    payment for “some job” Nysaland sa zasitha ataaaa.

  30. John says:

    ABALE KODI DZIKOLI LILI NDI MWINI WAKE? What special skills does jumbo have to receive all this money for contributing nothing to this country?whose tax payers money is GONDWE and PETER dishing out? DOES this government love malawians? I DOUBT. HOW much cash gating is going on behind the scene. CRY MY BELOVED COUNTRY.

  31. A Tonga Mba- vyo says:

    Lucius Bandas Song so goes ” Ali ndi nira zaooo. Ife tinzingokhalira Kukacha. He sung this song after an experience. This a thank you package

  32. Agora says:

    ”But the Attorney General Kaphale said there was no formal Contract between Jumbe and Governement…. and further argues that Jumbe was not vetted as a fit and proper person by RBM to manage the bank according to FS Act”

    My questions is HOW WAS JUMBE BEING PAID FOR 2 AND HALF MONTHS without the so called ‘formal contract’? Something is terribly wrong with our systems and we need urgent action before we go under as a NATION. Its time we humble ourselves and cry for divine help in this time of need!!!! 2 Chronicles 7 v14.

  33. dumerang says:

    Stupid pyiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

  34. Namukachapa says:

    There’s no reason why Jumbe shouldn’t get the K585 million, considering that he already received the K14 million for “some job he did”. This is his hard-earned money to help him recover from the Admarc matter. His achievement in singlehandedly ruining Admarc was the main reason why he was found to be the most suitable person to head the bank. So what’s all this fuss about? Civil society should in fact organize demonstrations to demand that this angel of a man should indeed get his K585 million now now!

  35. Bob says:

    Malawi is a pathetic country. How much more money is being paid to other individuals. Izi zaululika chifukwa chaclaim.

  36. johnM says:

    I think the Government was stupid. How can you start paying him before the company was set up?

    In employment law, it is not necessary for one to have a written contract in place, the fact that you the Government was paying him means effectively, there was a contract. One can have an implicit contract, or an explicit contract. Jumbe does have a case. We have a stupid Government indeed

  37. Blessed Banda says:

    So Jumbe was paid for some work he did. Is it the injunction he obtained to retrain MEC from physical count of votes last yea? Is this the way we will run affairs in Malawi. Taxes to the Dogs. Jumbe is the one who destroyed ADMARC when Mvula was destroying Shire Bus Company. What are we doing in Malawi?

  38. Boyd Kilembey says:

    Now when I evade MRA tax you will say I am NOT patriotic when my money is given free to thjeves before even an employment contract? Malawi is a circus. Nowhere else can this happen.

  39. Patriotic says:

    Malawian politicians really know how to reward each other.Listen. Malawians are not daft to believe that Jumbe was paid 11 million for doing some job as Kaphale would want us to believe. This was a thank you for the injunction he obtained after the elections. Prove me wrong Mr AG. By the way how much has Allan Ngumuya been paid? This is sickening!

  40. Bahasa says:

    Akuchita bwino , paja umathandizira kokatenga injuction

  41. i love prostitutes says:

    does anybody know what they’re doing in this comedy we call a country??

  42. i love prostitutes says:

    does anybody know what they’re doing in this comedy we call a country?

  43. Bololo Wachitumbuka says:

    585 million compersetion? Bank mukukhanzikisayo ndiye capital ndi zingati?

  44. KANDAWE says:

    BANK SINAKHAZIKITSIDWE, MWAYAMBA KALE KULIPILA MUNTHU ASANAYAMBE NTCHITO? THIS IS CASHGATE CHONDE AMABUNGWE TITHANDIZENI

  45. nYAU SITHOBWA says:

    Tinene zoona pano Dziko lonseli anzeru ndi Ajumbe mbava ya mbava anagulitsa chimanaga mu 2001-2002 AMALAWI ZOONA MWAIWALA KALE THIS IS TRUE THAT MALAWI WILL NOT DEVELOP SURE NTCHITO KUPATSANA MBAVA ZOKHAZOKHA

  46. TRUTH says:

    See how the Tax payer money is being circulated by the rich……Malawi is a cursed Nation!!

  47. Saludzai says:

    Mumapereka bwanji malipilo kwa munthu oti sanalembedwe ntchito???? A BOMA imeneyi ndi cashgate ina ndiithu.. MK14,000,000 kupereka kwa munthu oti si wantchito wanu?? weird Malawi. Shame on you politicians

  48. Gome Gondwe says:

    Our country

  49. Ineyo says:

    Koma eeeee

  50. Gule says:

    So for working two and half months without contract u paid him 14 mita,eeeee zandiopsa,qualification yake ndi yotan?Lets b serious guyz bank yosakhazikitsa,only logistics mpaka zuma zonsezo?Mwafatsa!

  51. Mgawadere says:

    Komatu alomwe ndiye mukuonjeza miyezi iwiri ndi half basi wadya kale 11 million abale………… izititu ndiye timati ndewu kapena vyanmba mubwenze ndalamazo olo contract palibe koma mukupasana cash Malawi waipa basiiiiiiiiiiiiiiiiiiiii

  52. Yesaya Dziko says:

    The bank has not yet been launched and Mk14million gone in 2 months. Govt money no control at all. Mpaseni balanceyo- Mk584 million.

  53. Dr Moo Tha Leeker says:

    How was he recruited in the first place? Zopusa. Reward because of those country inflicting injunctions? Jumbe are u serious? Malawi is on fire now because of such people like you, Allan Ngumuya, Maxwell Mbendera, Pitara mxiiii.

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