The Fiscal Risk of Political Suspensions: How Unlawful Dismissals Cost Malawi Millions

Every time a new administration takes office, Malawians witness sweeping changes across government ministries and parastatal organizations. While such shake-ups are often justified as efforts to enhance efficiency and accountability, they frequently come with hidden fiscal costs that burden taxpayers.

The Public Service Act of 1994 provides clear legal guidance on how public officers should be disciplined or dismissed. Section 27 explicitly states that any officer holding a permanent and pensionable position cannot be dismissed unless proven to have committed misconduct.

The law further requires that an officer be given a written notice outlining the alleged misconduct and at least 21 days to respond. These safeguards are not bureaucratic hurdles—they exist to ensure fairness, protect employees’ rights, and shield public resources from unnecessary losses.

Yet, time and again, these procedures are ignored.

Take the 2025 case involving Press Corporation Limited (PCL), where the Industrial Relations Court awarded K14.1 billion to three former executives for unfair dismissal. The court ruled that PCL had violated due process, leading to a massive financial liability. The company was ordered to pay 70 percent of the award (about K9.8 billion), even as it sought to suspend payment pending appeal.

A similar case at the Malawi Communications Regulatory Authority (MACRA) saw over K500 million awarded to a former Director General for unlawful dismissal. In both rulings, courts made it clear: failure to follow legal procedures in terminating employees is costly, reckless, and avoidable.

The implications go far beyond individual organizations. Every kwacha spent on court-ordered compensation represents money diverted from critical services—healthcare, education, infrastructure, and social protection. Such losses undermine government efficiency and erode public trust in the state’s ability to manage finances responsibly.

Preventing these fiscal risks requires more than policy rhetoric. Government institutions must strictly adhere to the Public Service Act and related laws. Transparent processes, thorough documentation, and respect for employees’ legal rights are essential—not optional.

Yes, public service reform is necessary. But reform must always operate within the framework of the law. Political convenience should never override constitutional or statutory principles.

Following due process in dismissals not only protects public funds but also upholds institutional integrity and strengthens citizens’ confidence in their government. Ultimately, accountability and transparency in public administration remain the foundation of Malawi’s development and stability.