Job cuts at FDH Bank: 250 employees declared redundant for Malawi Savings Bank merger with FDH

The integration of FDH Bank and Malawi Savings Bank (MSB) will see some 250 jobs being declared redundant, FDH Financial Holdings have said.

Mpinganjira:  A job can not be guaranteed

Mpinganjira: A job can not be guaranteed

In a statement released Wednesday signed by FDH Group Head of Marketing Sobhuza Ngwenya, FDH which acquired 80% shareholding in MSB on July 2, 2015, said the operational requirements and the need to fulfill their contractual obligations with Malawi Government in the sale and purchase agreement, have resulted in some positions being declared redundant.

“In total, approximately 250 employees from both FDH and MSB will be affected. This notwithstanding the merged bank will be among the biggest employers in the local banking sector,” said Ngwenya in the statement.

He however said the implementation of the redundancy program is in accordance with the Labour and Employment Laws of Malawi and good labour practice.

“This process has been undertaken in consultation with the Ministry of Labour and Manpower Development. In approving the merger, the Competition and Fair Trading Commission (CFTC) also recognized the need for FDH the implement a redundancy initiative as part of the business optimization process,” said Ngwenya.

“FDH recognizes that its employees will be key and expected to play a leading role in spearheading the merged Bank towards the successful attainment of its vision and mission.”

“ Although the core business strategy towards achieving the top bank status shall be driven by technology (IT) it is internally recognized that that the central pillar for growth is the Bank’s human assets (the people),” adds Ngwenya in the statement.

Ngwenya also said no FDH Bank or MSB branch will be closed as a result of this merger of FDH bank and MSB, even in locations where we have duplication of the branches

Giving an update of the integration process, Ngwenya said the IT integration is under way.

“FDH has invested in the world class T24 R14 system using an amount in excess of US$4 million (MKW 3.5 billion). First of all, all FDH bank customers will be migrated from the current T24 R10 core banking system to T24 R14 version. We will then move MSB Customers from the current Rubicon system to the T24 R14 platform. This process is expected to be concluded by the middle of May 2016.”

“ATM Integration is also in progress. Very shortly, FDH bank and MSB customers will be able to use either of the Banks’ ATMs as their ‘home’ bank’s machine i.e. they will not be paying a connectivity fee associated with transacting at a different bank’s ATM,” said Ngwenya in the statement.

He also noted that FDH Financial Holdings has several obligations under the Share Purchase Agreement (SPA) with the Malawi government one of which is recapitalize MSB to ensure that it is compliant to the regulations set by the Registrar of Financial Institutions.

“The second (obligation) is to turn around the Bank to be able to reduce the cost to income ratios which was at above 89 percent to around 60 percent within the first year. The third is to be able to ensure that Malawians are given a chance to get a share in the ownership of the Bank by listing the merged Bank on the Malawi Stock Exchange within 3 years,” said Ngwenya in the statement.

FDH Financial Holdings chief executive officer Thom Mpinganjira is on record saying the  merger of MSB and FDH  will be guided by the decisions of the Registrar of Financial Institutions, who is the governor of the Reserve Bank of Malawi (RBM).

“In matters of employment a job can never be guaranteed; it depends on performance. To guarantee a job means whether one performs or not they will keep their job. That is not so in FDH and cannot be so in MSB and I doubt whether there is any organisation that does that,” Mpinganjira said.

Government on July 2 2015 disposed of 75 percent of its shares in MSB which were acquired by FDH Financial Holdings Limited in a controversial deal that drew a backlash from members of Parliament (MPs) and civil society organisations (CSOs) who opposed the sale.

 

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41 thoughts on “Job cuts at FDH Bank: 250 employees declared redundant for Malawi Savings Bank merger with FDH”

  1. Lizz says:

    Southern Offender,
    Your ignorance is an example on why Malawi is still a poor nation. Tribalism amonst us is one of the biggest reasons why we Malawians dont help each other so that we can progress, its really shameful. Your excitement towards 250 people losing their jobs shows how much you lack human empathy! Regardless of which part of Malawi we come from, north, south or central, we all are facing poverty, inflation, lack of job security, food shortages, water shortages, poor health care and corrupt politcs. But i cant blame you for your ignorance, the selfish and poor leadership in this counrty has corrupted many of us to be selfish, corrupt, and small minded. That’s why many of us are comfortable with how things are in this country. We are all Malawian first and foremost, that means we should respect and acknowledge each other in a positive light, so we can strive for a better nation!!!

  2. Ngongoliwa says:

    Kodi Mr Chikanenepa sorry Chikaonda mukuti ndi Spar ili pa City Centreyi ku Lilongwe kapena Metro part B. Taona Spar ku RSA siizi ayi.

  3. Chikolopa says:

    Bank ili la FDH ndi la amumpesa a SDA, a CCAP yambisani lanu ifenso a Catholic tiyambise lathu. Ndamva kuti akupulumuka ku FDH ndi MSB ndi a SDA okhaokha. A catholic amowa onse out,

  4. codename brody says:

    will they be able to compensate all the people sacked though? we are talking of billions of kwachas worth of.compensation. mind you some of the people who’ve been fired had saved the bank for years in excess of 10 others 20.

    And funny enough none of the people who’ve been fired have been given their dues let alone even a termination letter yet. All of them have just been told verbally.

    Is this even legal? Will they be conpensated properly? But by the looks of it this far it looks shady on the side of people who’ve been fired.

  5. master says:

    southern offender
    u must be joking i think, losing a job has nothing to do with tribes my bro, Tumbukas do not work for FDH/MSB only, they are everywhere from UN, ADB, WORLD, EU and FDH doesnt even count in world matters unless u are telling me that your dull Mpinganjira is the CEO of the whole world,if u are bitter with tumbukas then go and walk on the lake, the tumbuka dominance cant not be stopped by one crazy mpinganjira and his dull presidnet peter mutharika who have no clues on how to manage an economy, who lied that no job will be lost, crooks have no place in 21ist century!!!!!

  6. Activist says:

    That’s capitalism for you socialism is the way to go

  7. beje says:

    capitalist make sure there is no lifetime job.open your eyes the casualties to be .

  8. tumbukas you have been abusing people from south ,.being mpinganjira CEO from south.he will do his possible to sweep all northerners in msb .so this your time to park and go to north.your days are numbered

  9. The Real Analyst says:

    This article is rubbish! The headline is about job losses yet it only presents the story from Mpinganjiras side. A journalist worth his salt should have delved into the sale agreement. When the company was being sold what commitments did the two parties make with regard to employees? Also give us information from the employees side. What is their story? Interview some of the employees. Tell us how many in top management, middle management, lower level are affected. Talk about the implications of this on our country. Was the MSB sale a good idea in the first place? This is a bank that was on the verge of collapse because of the bad debt given to Mulli by Bingu. The 250 employees have lost jobs because of Mulhakho wa Alomwe and cronyism. Government has once again failed to stand with its people. I am hoping some journalist with a brain will unravel this story and dig deeper. Malawi should put a stop to calamities like this!

  10. Jennifer Mengesi says:

    DEAR MAN OF GOD BUSHIRI
    PLEASE
    COME AND GIVE JOBS
    TO OUR BROTHERS AND
    SISTERS WHO HAVE
    BEEN SACKED BY MPINGANJIRA.FDH

    PROBLEM #
    MALAWIANS WILL TALK
    ALL SORTS OF RUBBISH
    IF A MAN OF GOD DOES SO.

    LAND OF IDIOTS.

  11. ZINAZI says:

    NDALAMA ZA CASHGATE
    ZOMWEZI KOMA KUTSAUTSA
    NAZO ANZANU ???

    KOMA MA COMPANY
    ACHILOMWEWA MBWIYACHEEE

  12. Zidura Ntengo Undigwere says:

    In spite of what Mpingannjira said, anybody who believed that the merging of FHD and MSB would not result in job cuts should get their heads checked. Or they just believe anything like: “I can build you a brick house on the water, on Lake Malawi.”
    Unfortunately, layoffs were inevitable. That is how capitalist business enterprises operate. But, hopefully, compensations will go beyond the minimum legal stipulations.
    Another reason for not developing deep roots at any place of work, in the modern economy. Always keep your eyes open for new opportunities, even if you are already employed. The days of a lifetime job were gone many years ago. All over the world, not just in Malawi.

  13. Zilani says:

    We saw this coming but the govt released a statement clarifying some issues of govt not ideal to run a bank.

    Govt further promised that the ministry of labour would ensure such abuse would not happen.

    MSB employees are victims of institutionalized corruption. Toxic loans were the money parties received from well-wishers.

    I can challenge that all employees that know too much of the toxic loans receive the chop first.

    Anthu opemphera amenewo.

  14. Zilani says:

    Poor MSB emloyees, victims of institutionalized corruption. MSB wasn’t supposed to be sold but recover all toxic loans from campaign financiers (party well-wishers).

    Let’s not be stupidly naive on this one. MSB was sold to payback the well-wishers handsomely.

    No wonder, the Access Information Bill’s logic was denied by the chief corruption master, the president.

    We will never know how these loans were approved or granted. MSB will never be a public entity again.

    Obviously, all those who know too much on these loans are ideal for this chop.

  15. tuvitwana says:

    DON’T WORRY GUYS, MSB IDZALANDIDWA MCP IKATENGA BOMA 2019.
    THE TRUTH IS THIS BANK IS FOR APM, GOODAL, MOST DPP GUYS. MPINGANJIRA HAS JUST BIN USED.
    SDA, APA PALI CHIKHRITU APA? HYPOCRITES BASI SABATA SABATA BUT VERY EVIL HEARTS

  16. thokoc says:

    Kulakwa kwambiri kuchotsa anthu momwe zililimu. do not sack only those from MSB records have shown that you are targeting those from MSB. Many Directotors have not been renewed from MBS others top are being tortured now for no good reason at all. what you were telling us is not what you are practicing now mr mpinganjira. Which bank here was supposed to shallow the other bank looking at the numbers> wayamba kukulandandani Mulengi chifukwa cha mtima wanu woopsawo. Loosing 700 million its not a joke muzunza anthu atate inu.

  17. madalo says:

    The writing was on the wall that mpinganjira was going to fire most of the staff .
    He made sure that people worked like slaves in some of the msb branches and then at the end decided to unceremoniously fire them.
    Anyway , his face tells a story

  18. Generation of vipers says:

    If my memory serves me right, when this merger was just in its initial phase, anthuwa amkanena kuti “NOT EVEN A SINGLE PERSON WILL LOSE HIS OR HER JOB” Now what the hell is this???????

    Koma zoti lonjezo linadulisa mutu wa Yohane mukuziziwa?????

    THIS IS VERY UNFORTUNATE

  19. Chambo says:

    GALU AMENEYU MPINGANJIRA ANADIKIRA KUTI AGWIRITSE ANTHU NCHITO THEN AATAMANGITSE.
    THE WRITING WAS ON THE WALL THAT HE WANTED TO USE AND THEN FIRE THEM
    KUMAKALA KUWERUKA USIKU MABRANCHIMU.
    ANYWAY THE BATTLE HAS JUST BEGAN!
    WHERE DID YOU SEE , KUNGOKUYIMBIRA PHONE KUTI UPITE KU OFFICE ONLY TO BE TOLD VERBALLY KUTI NCHITO YATA WITHOUT ANY REASONS AND ALSO WITHOUT A LETTER OF DISMISSAL

  20. spectator says:

    Atsogoleri bambo Mpinganjira tsopano Tambala asanalire mwasintha kale zoti simuchosa anthu ntchito. Malawi ndiophweka kunakakhala kwa anthu ochangamuka onse a MSB anakayamba strike dzulo lomwero. But aaaa a Malawi ubwidi uzatipha. Yambani strike muthu wakupusisani akuthani nonse asala a SDA ndi azibale ake okhatu kumeneko. Tachangamukani nanu muyendere payerepayere ngati Maranatha boys.

  21. Kanthuaka says:

    MSB WAS GIVEN TO THOM MPINGANJIRA JUST OUT OF SELFISHNESS OF PETER MUTHALIKA TO SAVE HIS SELFISH TRIBESMAN MULLI WHO GOT BILLIONS OF LOANS FROM MSB WITHOUT PAYING.IT WAS CLEAR FROM THE OPPOSITION THAT MCP MOUNTED AGAINST THIS SALE THAT IF THE MAJORITY OF MALAWIANS HAD VOTED FOR THE WISE AND VIBRANT LAZAROUS CHAKWERA OF MCP, MSB SHOULD STILL HAVE BEEN A GOVERNMENT BANK. WE COULD NOT HAVE BEEN HEARING ABOUT A WHOOPING 250 MALAWIANS BEING DECLARED REDUNDANT AT A TIME WHEN THE MAJORITY OF MALAWIANS REMAIN UNEMPLOYED.

    THERE IS NOTHING THAT PETER MUTHALIKA HAS DONE IN THESE TWO YEARS HE HAS BEEN MALAWI PRESIDENT APART FROM PRESIDING OVER A GOVERNMENT WHICH HAS RECORDED THE HIGHEST INFLATION RATE IN SOUTHERN AFRICA , THE LOCAL CURRENCY HAS BEEN DEPRECIATING AT SUPERSONIC SPEED, AND EVER INCREASING COST OF LIVING AND UNEMPLOYMENT LEVELS FUELED BY JOB CUTS. PETER MUTHALIKA MUST RULE MALAWI ONLY FOR A MAXIMUM OF 5 YEARS AFTER ALL HE HAS PROVED BEYOND REASONABLE THAT DESPITE BEING A PROFESSOR HE IS MORE OF A LIABILITY DUE TO HIS ADVANCED AGE.

  22. Dan Waliko says:

    whoever is connected to the affected employees please close accounts

  23. Zoona says:

    If you want to keep your job join Seventh Day Adventist basi. Otherwise catholics should go to CADECOM, CCAP Nkhoma. Kikiki

  24. ineyo says:

    My malawi coming the worst country to live.
    with today this and tomorro that.

  25. inembo ba says:

    From your statement Mr Mpinganjira ‘ a job cannot be guaranteed’ timvepo chani otsalafe komaso some who have interest in fdh and msb. I hope keeping your money there is not guaranteed ndaonera pa maranartha .

  26. boy says:

    Some body has been paid money to delete valid arguments on this blog. Where is my comment

  27. boy says:

    Cruel Tom brace yourself for a marathon of court cases. MSB is by far a profit making venture than your FDH. 90% of those made redundant are MSB and not all of them are unqualified or inefficient. You are well known to employ based on tribal lines, that’s why you are sorrounded by you children and relatives in key positions. The criterion you used to chose between the MSB and FDH employees where you thought jobs were duplicated is totally unjust.

    Your intergration team was 99% comprised of FDH staff. You never gave the MSB staff chance to prove their skill. Your actions will cost you dearly. You will lose a lot of money in the courts and most likely customers will shun you and close their accounts. Watch this space. You were wrongly advised. Some customers have a special bond with certain employees.

  28. youna says:

    But why did he lie to the Nation that no one is going to loose his/her job? Malawians are indeed enemies of Malawi………

  29. kasim says:

    Mark my words this is what people at ESCOM should expect should the much touted unbundling materializes. Yesterday they gave hope to employees at MSB today this is what you see. This is what you expect from dishonest and selfish govt. Do Malawians deserve this?

  30. kasim says:

    Mark my words. This is what people at ESCOM should expect should the much touted unbundling process materializes. This is what you expect from a dishonest govt. Yesterday they gave hope to employees at MSB today see the results. God have mercy. Do Malawians deserve to be treated like this ?

  31. Khwisa says:

    Potenga boma 2014 mumati mudzatipezetsa ntchito, but now even the few jobs that were there are going. Oops DPP mfiti zawanthu chauta wakhiya simumaliza apa deee

  32. Padambo Njobvuyalema says:

    A few months ago FDH conducted interviews and successful candidates were told to wait for sometime before they picked up their jobs. Obviously FDH had resolved to get rid of as many MSB employees as possible. To FDH, everyone in MSB was deemed a failure. It is not surprising that this development is coming at this time.

    WHAT IS UNFORTUNATE, HOWEVER, IS THE MANNER IN WHICH THE DISMISSED EMPLOYEES HAVE BEEN COMMUNICATED. AN INSTANT VERBAL DISMISSAL WITHOUT BEING GIVEN TIME TO PACK UP YOUR STUFF. ONE IS ONLY TOLD “DUE TO THE MERGER AND RESTRUCTURING PROCESS, YOUR POSITION DOES NOT EXIST. PLEASE GO NOW AND WAIT FOR YOUR LETTER WITHIN 48 HOURS”.

    This is unfair considering that some of these people have served the bank for so many years and are just victims of political circumstances. Malawi’s economy is very bad at the moment and “CREATING UNEMPLOYMENT INSTEAD OF EMPLOYMENT” as is the case now with FDH, for whatever excuse they have, is in effect “ADVANCING BACKWARDS WHILST RETREATING FORWARD” for the Malawi economy.

    IF THIS DEVELOPMENT TOOK PLACE IN THE UK OR USA, THE GOVERNMENT WOULD HAVE BEEN GRAVELY CONCERNED AND COULD BE DEMANDING EXPLANATIONS FROM FDH. but since this is Malawi, ALL IS WELL!.

  33. john phiri says:

    A lomwe????????? Those are the fruits of DPP regime. The problem is that people take serious issues for granted. It was the same Thom who told the nation that no single soul will lose his/her job. We need to impeach Peter before all Malawians become jobless.

  34. Dr Tonde says:

    Ali ndi mkazi wake mu Mabank amenewa sagona tulo. Mabwana akhala akukwata azikazi a eni ake powanamiza kuti redundancy isawapeze!!!!

  35. Joseph says:

    Pepani

  36. Poor Malawi says:

    One of the bank owned by a Malawians , these are the results you which we get . This idiot started by promising the world that no single person will loose his / her job , before a year things are turning upside down.

  37. Bengazi says:

    i saw this coming! i was extremly surprised when the officials were saying, they shall not lay off some employees the time they bought MSB. Where on earth can that happen. Next time tell your employees the truth, so that they should start looking for some jobs else where!

  38. chikopa says:

    Kutha kwa ntchito simathero azonse. Limbani, limbani mitima aulendo. This was inevitable. There were so many people at MSB who got employment due to dubious means.

  39. MERCEDES says:

    FDH AND MSB DONT SLEEP WE GOT LOTS OF MALAWIANS WHO ARE RICH YOU MUST SELL THEM YOUR SHARES THEN YOU WILL SAVE JOB CUTS

  40. Ambusye Nasalile says:

    It was the performance of those who are to be redundant now that attracted those who are now interested in integration of the two banks. Had it been that their was under-performance, evidently one of the banks or both of them couldn’t have such a desire to merger with the other. However the fact remains that you got them while employed and now you make them jobless; do we people really have passion even to imagine the situation we put this other people into? When employed they were also paying taxes to government; do we really love our country? What sort of ego is this; SELFISHNESS???

  41. thom says:

    Effects of excessive Kwacha depreciation, the kwacha has been too volatile how can we move from 440 to a dollar to 760. Although it has come back to 700, it is bad for companies as staff are being redunded. If kwacha was trading around 600 to a dollar companies, factories would have not sustained huge losses and jobs would be safe. Government should have done better now this result of job losses are because of the free downfall of Kwacha

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