By Benadetta Chiwanda Mia:
Twenty-five years after the Workers’ Compensation Act (2000) was enacted, Malawi is yet to establish and operationalise the Workers’ Compensation Fund, a delay that employers argue is increasing financial pressure on industries and threatening business stability.
In an interview, Employers Consultative Association of Malawi (Ecam) Executive Director George Khaki expressed concern over the growing burden on companies, citing excessive claims, disproportionate injury compensations and bureaucratic delays in processing payments.
“The fund should have been operational in 2000 when the Act was enacted. Its absence compromises workers’ welfare and threatens business sustainability,” Khaki said.
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He, however, expressed the employers’ commitment to contribute to the fund as required by law.
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However, Workers’ Compensation Commissioner in the Ministry of Labour, Arthur Ntandika, attributed the delay to lack of K9.5 billion in seed money from the Treasury.
The money is needed for ICT solutions, staff training and fund establishment.
“The main reason for the delay is seed money from the Treasury. It is going to be operationalised soon,” Nthandika said.
When reached for a comment, Treasury spokesperson Williams Banda said before the fund could be operationalised, legal instruments and stakeholder engagements had to be completed.
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“Creating the fund involves procedures in line with Section 44 of the Public Finance Management Act, and requires the involvement of several key institutions,” Banda said
He outlined the involvement of key institutions, including the Solicitor General, Secretary for Justice, Auditor General, Accountant General and the Minister of Finance, in approving the fund’s structure, sources and budget.
“After the legal instruments have been created, MDA is supposed to come up with a budget for that fund, which is to be approved by the Ministry of Finance. So if they have done that, then they are ready to go,” he said.
