MEDF former staff seek K20bn after unfair dismissal ruling
Around 80 former employees of the Malawi Enterprise Development Fund (MEDF) are demanding a staggering K20 billion in damages after a court found they were unfairly dismissed – in a ruling watchdogs warn could leave ordinary Malawian taxpayers footing the bill.
The group, all sacked between 5 and 12 December 2025, took their case to the Industrial Relations Court (IRC) in Mzuzu, which ruled on 16 June 2026 that MEDF – formerly known as the National Economic Empowerment Fund (NEEF) – had breached the law in dismissing them.
Lawyer for the 80 former staff, Wanangwa Munkhondia, said the court was now hearing assessment of damages proceedings, with evidence being considered from each former employee individually, given that all are applicants in their own right.
‘We are demanding K20 billion for the 80 applicants,’ he said. ‘There were 55 applicants at the time of commencement of the action and an additional 27 were added to the case before delivery of judgment. One of them withdrew his claim.’
MEDF’s lawyer, Alfred Lungu, confirmed the fund intends to appeal the liability ruling, branding the compensation demand as wildly excessive given the employment status of those involved.
‘These were all employees on probation,’ he said. ‘Some of the claims they are making are way overboard. It was uncertain whether their employment would continue or not.’
But in his judgment, IRC deputy chairperson Anthony Kapaswiche was unequivocal, awarding lead applicant Yamikani Vincent Jamu and the 80 other former staff – all of whom were on probation at the time – remedies for both unfair dismissal and breaches of fair labour practices.
Kapaswiche agreed to dispose of the matter on a point of law rather than proceeding to a full trial, finding that the case represented clear and unambiguous breaches of employment law by the fund.
Crucially, the court found that MEDF had operated on a fundamentally flawed understanding of Malawian labour law, wrongly believing that probationary employees were not entitled to due process during contract termination – and that the affected staff were never even consulted before losing their jobs.
The ruling has since drawn sharp criticism from governance watchdogs, with National Advocacy Platform chairperson Benedicto Kondowe warning that the case lays bare how poor governance, procedural failures and a blatant disregard for labour law can translate into enormous financial liabilities – ultimately borne by ordinary Malawians.
Centre for Social Transparency and Accountability executive director Willy Kambwandira went further, describing the ruling as a costly reminder that unlawful decisions made by those in power are never without consequence.
‘Unlawful political decisions are never free,’ Kambwandira warned, ‘but are an invoiced letter to the taxpayer.’
The case now leaves MEDF facing the prospect of a lengthy and costly appeal battle, with the final compensation bill – potentially running into billions of kwacha – ultimately likely to fall on the shoulders of Malawian taxpayers regardless of the outcome.
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