FMB to pay 14 unfairly dismissed after Malawi Supreme Court dismiss final appeal

First Merchant Bank Limited (FMB), which is  listed on Malawi Stock Exchange (MSE), will pay billions of Kwacha to 14 employees it illegally fired in 2012 after the Malawi Supreme Court of Appeal on Friday upheld decisions by two lower courts.

Modecai Msiska (right) represented FMB in the case the bank has  finally lost

Modecai Msiska (right) represented FMB in the case the bank has finally lost

The Industrial Relations Court (IRC) first determined that the bank erred in retrenching the employees without notice and ordered some compensation.

FMB through its director and corporate lawyer Modecai Msisha appealed at the High Court in Lilongwe against the judgement but  Justice Fiona Mwale upheld IRC’s verdict  and the bank appealed again.

A three-member judge panel of Frank Kapanda, Anaclet Chipeta and Lovemore Chikopa  still upbheld the loer court’s decision and made a determination that bank  should pay compensations to the fired employees.

The bank fired 19 employees without notice, but only 14 dragged the bank to court.

One axed employee, who was among those that sued,  reportedly died in the process of the protracted court battle.

FMB is one of the commercial banks doing well in the country and making billions of Kwacha profits.

In 2012, FMB reported K3.4 billion profit, a 70 percent jump compared to the previous year, but five percentage points shy of its projection.

In the year, the bank reported a 96 percent growth in non-interest income to K4.7 percent from K2.4 billion while its net interest income grew by less than one percent to K4.3 billion. And in the period ending June 2013, FMB reported an after-tax profit of K3.5 billion which the bank said was in line with its projections.

The bank’s assets in the period ending June 2013 jumped by about 18.5 percent to K58.9 billion which included K4 billion in connection with the acquisition of the operations of the International Commercial Bank (ICB) in Malawi, Mozambique and Zambia.

FMB announced the acquisition of ICB Malawi, Mozambique and Zambia, extending its commercial presence beyond Malawi and Botswana where it already exists.

The bank acquired 100 percent shares in ICB Malawi, 70 percent of ICB Mozambique and 62 percent of shares in ICB Zambia all of which are licensed commercial banks in their respective countries.

FMB managing director Dheeraj Dikshit saidthe acquisition said the development will strengthen the bank’s position in Malawi and enable the group to expand its regional footprint, and gain entry into the fast growing economies of Zambia and Mozambique, the paper reported.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From Nyasatimes

More From the World

13 thoughts on “FMB to pay 14 unfairly dismissed after Malawi Supreme Court dismiss final appeal”

  1. pedegu waku capital says:

    Tuji and Ellos from Office of Ombudsman its ur turn now to face the music .The acted inhumanly by firing pple for no reason but to achieve ur selfish agenda mumva kuwawa with ur incompetence

  2. Zokomo Kwambili Ahigh Coart Poweluza Mulanduwu Mwchilungamo

  3. joseph banda says:

    But Bwana Che Modicai, you mean the judges took the law from other books. You mean you could not advise FMB to act humanly? You mean it should always be you to defend the devils wanting to perfect injustice. THINK OF IT. You already made your money. Then help the helpless!!!!!!!!!

  4. King of Israel says:

    The guyz at IRC are doing an excellet job they need to be rewarded I have never read any negative judgements from them. The chair person here can’t be bribed. Kip the fire burning. JB Motooo!

  5. matchaya says:

    That’s a good move by the court. We are waiting to hear the judgement for the MRA people which were retrenched in 2010.

  6. zeze says:

    Justice finally for the likes of Chair and Aizen who served the bank well straight from college and contributed to its growth.

  7. Chigodi CDSS says:

    it is a lesson to other the employers

  8. phiri says:

    It is because of his Dick being shit.

  9. Victim Chamkhuni Lwazazi says:

    Surely procedures should be followed when retrenching or dismissing employees, there are good reasons. Apart from the embarrassment on them, they have responsibilities in their families. They are created equal to those in authority and the rich.

  10. hahahahahahaha says:

    mmmmmmm

  11. eye eye says:

    Good lesson! retrenching without notice?

  12. joaquim says:

    Eisenhower Mkaka should be a happy man indeed, hes worth a 100 million bugs now!

  13. Somozani says:

    Thinking before acting is a great deal than thinking after acting. The management fired those people on personal grudges. Losing a billion kwacha in Malawi is a material loss. It could have been avoided.

    The people were villian two years ago now they are heroes.

    The problem of the Asian owned banks is underpayment. Its a pity to see a take home salary of the Manager is hand to mouth. Right now people in grade 4 and below are as poor as a church mouse.

    Go to the branches of the bank, clerks even officers are carried away by tips (mbuzi) from customers, its bcoz of poor salaries. Now they are coughing billions in style to ex staff of FMB.

Comments are closed.