MSB violates Reserve Bank of Malawi directives, staff claims

The chief executive officer of  state-owned commercial bank, the Malawi Savings Bank (MSB, Ian Bonongwe has come under workers fire that  he makes a number of key decisions without regard to Reserve Bank of Malawi (RBM) directives.

This follows a major shakeup he has made which has seen some departments of the bank abolished.

The MSB staff through a six-page anonymous letter seen accused the bank’s leadership of poor management which they said is plunging the institution into a loss maker.

They say it is a requirement that all senor bank appointments must be vetted by the Central Bank before effecting same but MSB has not followed that.

The MSB staff claim that “over the past five years following the departure of Mr. Bonongwe, the bank had successfully moved from loss making to profit making institution. But just a year after his return, the bank’s performance is so bad that it is currently registering huge losses thereby clearing showing the management in-competences of the incumbent CEO.”

Bonongwe – who suggested that government should dilute its share ownership in MSB – has justified the shake-up saying it is one way to turnaround the situation.

Among other changes, former MSB head of human resources and administration/company secretary Haston Chamba is now head of human resources whereas Fanuel Kumdana, who was head of operations, is now head of administration and support services.

On the other hand, Francis Kam’malere, who was head of corporate banking, has taken over Kumdana’s position as head of operations while Teddie Chanza, who was head of retail and business banking, now heads the corporate banking division.

“When Francis Kam’malere was being appointed to head Corporate Banking, the Central Bank was just advised after publication of the appointment. The latest senior appointments and creation of new departments have been done without seeking the approval of either the Board or the RBM,” claimed the disgruntled staff in their letter.

Further, former finance manager (management accounts) Million Hera is now senior treasury and international trade manager whereas finance manager (reconciliation) Hilarious Nampota is now finance manager (management accounts and call report) and corporate affairs and marketing manager (retail and business banking) Brenda Chilima is now business development and marketing manager with international trade manager (corporate banking department) Remi Mussa becoming human resources development consultant (foreign and international trade).

The staff letter claimed Hera is “least qualified for the job” and could not pass the test requirements by RBM, saying his appointment smack of nepotism  “because he comes from home”.

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