The government is facing growing criticism over what analysts describe as a glaring contradiction between its aggressive austerity rhetoric and the costly political restructuring taking place across State-owned enterprises, where some parastatals are reportedly paying two senior executives for the same position.
Namlomba: Silent
The development comes at a time Treasury has repeatedly defended painful expenditure controls, procurement freezes, travel restrictions and recruitment suspensions as necessary measures to stabilise Malawi’s struggling economy.
However, investigations show that following the September 16 2025 General Election, widespread political changes in government ministries, departments and agencies have left several public institutions maintaining former chief executive officers and directors general on full contractual benefits while simultaneously paying newly appointed replacements.
The arrangement has effectively created parallel executive payrolls financed by taxpayers in institutions already operating under severe financial pressure.
Sources within government and parastatals say senior executives in State-owned enterprises receive between K10 million and K20 million monthly, excluding benefits such as fuel allocations, housing, security and school fees for children.
Most of the affected former CEOs and directors general recruited during the previous Malawi Congress Party administration have reportedly been seconded to public universities and training institutions while serving out the remainder of their contracts.
Despite the redeployments, they remain entitled to full contractual benefits as employees of the same institutions where new executives are already drawing salaries.
Among institutions affected are the Electricity Generation Company of Malawi, Malawi Gaming and Lotteries Authority, Blantyre Water Board, Southern Region Water Board, Northern Region Water Board, Central Region Water Board, National Food Reserve Agency and National Oil Company of Malawi.
At Egenco, Engineer William Liabunya replaced Maxon Chitawo, who was seconded to Mzuzu University.
At Blantyre Water Board, Yeremiah Chihana replaced Engineer Robert Hanjahanja, now teaching at Malawi University of Business and Applied Sciences.
Similar arrangements have occurred at regional water boards, NFRA, Nocma and Magla, among others.
Economist Dalitso Kubalasa yesterday described the development as fiscally reckless and morally troubling in an economy where millions of citizens are struggling with rising costs of living and deteriorating public services.
“Every leader approving these parallel payments should pause and ask whose child’s meal and chance for education have I just spent?” said Kubalasa.
“In a strained economy, we cannot afford to treat talent like disposable tissue.”
Willy Kambwandira, executive director of the Centre for Social Transparency and Accountability, said the practice undermines the credibility of government’s austerity programme and exposes weaknesses in public sector reforms.
“Austerity is not just about announcing budget cuts or restricting travel,” he said.
“It is about eliminating waste, closing loopholes and ensuring that resources are aligned to institutional needs.”
Kambwandira said the arrangement has created hidden wage bill inflation and unnecessary duplication of costs for a single executive role.
Michael Kaiyatsa of the Human Rights Defenders Coalition said even if the arrangements may be contractually permissible, the public still has legitimate questions about whether they are ethical and financially justifiable.
Meanwhile, sources within government say Treasury officials are increasingly concerned about the financial implications of the parallel salary arrangements and are expected to discuss the matter this week.
Justin Saidi, who signed austerity directives and secondment letters affecting several CEOs and directors general, reportedly did not respond to requests for comment yesterday.
Information Minister Shadric Namalomba acknowledged receiving questions but had not responded by press time.
The revelations are likely to intensify scrutiny on government’s austerity measures, with critics arguing that public confidence in expenditure reforms risks collapsing if authorities continue demanding sacrifice from ordinary citizens while permitting costly duplication at the highest levels of public institutions.
