Reserve Bank of Malawi Deputy Governor Henry Mathanga resigns

Onilie Nkuna

Deputy Governor of the Reserve Bank of Malawi (RBM) Henry Mathanga has resigned from the position with immediate effect, ending a career spurning 37 years as a central banker.

In a letter addressed to the Office of the President and Cabinet and the office of the RBM Governor, Mathanga says his resignation is on the basis that “I have been constructively dismissed”.

“I have come to this painful conclusion after a pattern of events that, in my strong view, clearly renders the RBM/or Malawi Government, as my employer, in serious and fundamental breach of the contract of employment to the extent that the working relationship between myself and the employer is no longer tenable,” Mathanga writes.


In the letter, Mathanga bemoans the manner in which he was sent on forced leave, suffered exclusion from executive management meetings and board meetings and was denied contractual and standard benefits without explanation, among other grievances.

“The only time I received the communication was on or about 14 December 2020 when, through a written invitation to a meeting on short notice, the governor informed me that the bank’s board had decided to reduce my salary. This decision was made without any consultation with me,” Mathanga says.

Recently, the Industrial Relations Court (IRC) stopped the central bank from implementing a pay cut to Mathanga’s monthly salary from K22 million to K10 million.


The court also ruled that the central bank give Mathanga an official vehicle befitting his position as Deputy RBM Governor, apart from offering him for sale a motor vehicle he has been using for the past five years in line with the bank’s official motor vehicle policy and practice.

“But to my knowledge, the bank is yet to comply with any of the court’s orders,” Mathanga said in an interview yesterday.

When contacted, RBM spokesperson Onelie Nkuna said she could not comment on the matter as it was a Sunday.

But, in a written response recently on whether RBM was considering appealing the IRC ruling, Nkuna said the bank was yet to decide.

“A review, and hence way forward, on the ruling of the IRC is yet to be done,” Nkuna said.

Most recently, some of the longest-serving top executives at RBM expressed concern over some developments at the central bank, one of which being on pay-cuts.

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