Parliament summons Labour ministry over Malawi Savings Bank retrenchment

Parliament has summoned ministry of labour principal secretary and his team to give a detailed account on why the ministry allowed FDH Holdings to retrench 250 employees at Malawi Savings Bank (MSB) after assurances that no one would lose a job at the bak.

Richard Chimwendo Banda: Concerned with MSB job cuts

Richard Chimwendo Banda: Concerned with MSB job cuts

Chairman of Community and Social Welfare committee of parliament Richard Chimwendo Banda said just a few months ago, the minister of finance Goodall Gondwe assured parliamentarians that the government decision to sell off all stakes in Malawi Savings Bank would not result in loss of employment even for a single worker.

“The officials from the ministry of Labour have assured us that they will come very soon, they will appear before us because this is a serious matter, we don’t want more people to lose their jobs at MSB. We want to find out if the government deliberately lied to us that no one would lose a job at MSB,” he said.

He said parliament rejected government decision to sell off MSB because of, among other reasons, fear that jobs would be lost at the bank.

Principal secretary for Labour Patrick Kabambe said the ministry officials will appear before the committee.

Earlier, minister of Labour Henry Mussa said FDH Holdings consulted the ministry before the retrenchment and government officials were convinced there was need for the retrenchment.

He said re retrenchment was necessitated because of the merger between FDH Bank and MSB saying there were duplicate positions for one position.

FDH Holdings head of marketing Sobhuza Ngwenya said the retrenchment has made MSB more effective and efficient than ever before as it starts a long journey for listing on the Malawi Stock Exchange.

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27 thoughts on “Parliament summons Labour ministry over Malawi Savings Bank retrenchment”

  1. trumpet says:

    Tengu ….if u don’t know labor laws better be silent than expose ur ignorance here.. upon trasfer of an entity all employment contracts are transfered automatically to the new entity fdh has no right or what so ever to retrench employees that is un fair dismisal which calls for compesation or restatement of the employees

  2. Tengu says:

    Politicians sometimes speak politically. MSB ceased to exist when its ownership transferred to another commercial bank that bought it. Since a commercial bank cannot own and run another commercial bank, the purchase of MSB dissolved MSB. Staff should have demanded their dues on sale of the MSB and negotiated new contracts at the buyer bank. No one can lose a job at MSB which does not exist. A non existent entity cannot pay dues. Did the “retrenched employees” sign employment contracts at the buyer bank? Can they hold the buyer bank accountable for their dues after the MSB was dissolved?

    1. Kenkkk says:

      It doesn’t matter when one entity is bought by another or merged, the staff’s continuity of service is guaranteed. Hence fdh should pay them unles malawi labour laws are different from other countries I know and have worked. Fdh bought msb more than a year ago and the same staff were being paid by it, so they can’t deny staff retrenchment compensations or what they are supposed to get.

  3. Dambula says:

    I cry for my beloved Malawi, where is it heading

  4. Banthu says:

    God have mercy on our nation

  5. malabada says:

    Please Parliament help the people who voted for you to be there

  6. munthu says:

    We saw this coming

  7. Sunganani L Manjolo says:

    I had said it once FDH bought MSB that an MSB employee with good foresight would do well to start looking for other job options because I just didn’t see the retrenchment not happening.

    Now I am not sure what the Parliamentary Committee will accomplish with the summons. FDH remains a private entity and they cannot be forced to do anything about the 250 who have been let go. The question, I think, should be about what those 250 will do with their packages after retrenchment…and that is not FDH’s responsibility.

  8. Machende says:

    FDH Bank ya ma Hule,mabwana onse mahule okha okha,ena amanyengela mu office ena amanyenga a G4S,ena amanyenga azikazi a eni ,ena amanyenga masekilitale Ethel,Sara,Ruth Kayira,Mandisa ,Chenga,Mada,ena mwa azimai ochinditsa mu FDH.

  9. Matombodya says:

    Good move by the committee. Can i add on your shoplist of what to attend to? The Pension Act provides that pension shall not be taxable. The Taxation Act provides that pension be taxed. The pension act provision was deferred. Can you seek that the Pension act provision on taxation of pension be implemented please. You agreed on this in parliament through the act

  10. observer says:

    DEAD PEOPLES PARTY(DPP). Instead of creating jobs in the already jobless Country, you’re now selling government property and retrenching people. do you know how many people have been affected? the answer is NO because your stupid Gay President amati ALIBE PULOBULEMU. it’s 250 employees + plus their families, parents, dependants, house girl/boy, amawokala and many others.

  11. Nkhombokombo says:

    These guys are only looking from one angle, their fame and profits, forgetting the plight of problems their retrenched populace is going through!

  12. Chisankho says:

    Nyasa Times you don’t lose anything by being factual

    MSB FDH did not do thorough consultations with the Ministry

    Useless committee and government stop retrenchments ikawalipira anthu iyoyo?

  13. Mphepo zinai says:

    Sad part is retrenchment depended whether you were Seventh day church member or not.

    If you were was 7, you were saved

  14. Generation of vipers says:

    The best this bank can do is to relocate to the newly declaired self autonomous region of Mulakho otherwise it will find the going tough. Zangoyambika ndi achina Maranatha

  15. Concerned says:

    Next is ESCOM staff were forced to sign some stupid memos assuring them they will not be retrenched. Please our Parliamentarians take their board of directors and management to task before it is too late.

  16. The Analyst says:

    O………………………………………………………………………………………………………………………………………………………………………………………………………………O
    These MPs are clearly ill-advised and out of touch with reality . . .
    . . . Truth is – with govt as a major shareholder, MSB may have been as overstaffed as most govt entities. Retrenchment was thus one of the most expected results of the sale – since its now a private entity.

    . . . Further, everybody who cares hence doesnt need disappointments in life, knows how the mind of a human being works. Most people promise “A,B,C” but always do “X,Y,Z”. Thus, although Mpinganjira promised to relieve no one of his/her duties; he did exactly the opposite, as he is a businessman and just as in politics; there are no honest businessmen.
    ……………………………………………………………………………………………………………………………………………………………………………………………………………..
    Also . . .
    . . . Was the statement about no retrenchment legally binding? No!
    . . . Did they agree on how long the no-retrenchment talk would be observed? No!
    Now, what if the no-retrenchment peiord was one year and its now elapsed?

    Simply put . . .
    . . . these parliamentarians are misleading themselves into believing there is any sense or use summoning the Labour Minister for the “unexpected” retrenchment. For what? Will they even reverse the sale or re-instate the retrenched staff? Using what reason or capacity or right or law?

    Ill-advised MPs!
    O………………………………………………………………………………………………………………………………………………………………………………………………………………..O

  17. Kanyimbi says:

    Congrats!! Our parliament is now working. Please continueeeeeeeee!

    1. Zoona ndi Izi says:

      Your felicitation is misplaced!

  18. International Observer says:

    This summoning of people to parliament on trivia has to be looked at carefully. Where to day world over is the word “retrenchment” strange? If the western countries who apparently finances poor countries, Malawi inclusive, are finding it an uphill task to provide employment to their nationals, what is Malawi not to feel the backlash of the recession? Those summoning are just practising cashgate but in a clever way. All they are looking at is the sitting allowances they will get for discussing rubbish. Tell them to go there on empty pockets, find accommodation and food for them and nobody will turn up. Ndani sakudziwa usiwa uli pa Malawi. Two days ago the British government announced that unemployment figures recently have risen – inu akapompa ngolo ndiye mungatani?

  19. Ganimunthu says:

    Well thats the way to go Parliament. Hon Chimwendo and your committe please grill them and ask them why they lied to the nation at large .

  20. fyoshibubu says:

    kodi abale ndalama m’mene yavutiramu ndikumatchotsananso ntchito? kumeneko ndikulakwa kodi ngati akuluakulu akumakana kuchoka m’maudindo sichifukwa choti alibe pogwira akudalira ntchito? nanga bwanji kupezelera ana? taganizani muli inuyo mungamve bwanji anthu amene achotsedwa ali ndi maudindo ambirimbiri muti tsono atani ntchito zikusowa muti atani?

  21. [email protected] says:

    so malawi savings bank is not making any profit

  22. Ntaila says:

    You were dealing with crooks and everybody even kids know that they are crooks, DPP. Only God will punish these people as in 2012. Just leaveit there and pray

  23. Joseph Banda says:

    REALLY? CLERK of Parliament are you funding this? Let us get our priorities right here. IF PARLIAMENT FAILED TO STOP THE SALE AS IT WAS OUTSIDE ITS MANDATE, then what makes this A PRIORITY? The FDH holdings ltd is a company governed by the company law. What management is doing is purely a management decision passed by its competent Board. Even the highest share holder cannot stop this. Now here is our Parliament wanting to waste money instead of going to their constituencies to convince the people to look after the small food/maize crops to be harvested. WHAT IS REALLY WITH THIS PARLIAMENT?

    LISTEN TO ALL & SUNDRIES. THIS WILL ACHIEVE NOTHING, but allowances for the committee. THINK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  24. Kenkkk says:

    Then why didn’t the minister go back to parliament to explain that things have changed and jobs will be lost at msb? Then parliament would have considered the issue before any retrenchment took place.

    Only fdh staff should have lost their jobs, not msb staff as they were protected by parliament.

    This dpp govts has no respect for parliament when it comes to issues that they are heavily involved.

  25. Amunu Kudambo says:

    What a waste of time! You can’t have a merger without retrenchment!!!!

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