Finance Minister Cancels All Multi Million Government Compensation Payments ” Will defend each case robustly”

lipengaThe government has ordered the Attorney General (AG) to review all cases, where it agreed to pay out millions of kwacha to dismissed top government officials, Finance Minister Ken Lipenga confirmed to the Daily times on  Sunday.

The move follows stinging criticism from the Malawi public including donors with one western envoy describing the payouts as “golden parachutes”.

In an interview, Lipenga said no official was yet to be paid the compensation despite the media reporting on several former top brasses agreeing with government through legal means on multi-million kwacha out-of-court settlements.

“What we have done is to ask the office of the Attorney General to review all these cases. Then the cases will be challenged in court where government will defend each case robustly,” Lipenga said.

He insisted that no official was yet to receive any payout, saying the Treasury could not make the payouts without his knowledge.

Efforts to speak to Attorney General Anthony Kamanga on the matter yesterday proved futile.

However, he was quoted by dailytimes’s sister paper The Sunday Times on February 17, 2013 as saying the government would save money in the out-of-court settlements.

He said his office considers exit clauses in contracts and other issues before coming up with the figures.

“The decisions are made for public good. My office considers a number of issues before arriving at the figures and I can assure you that we have been paying less than would be the case had the issues gone to court. We have been saving funds that way and we have done that for public good,” Kamanga was quoted as saying.

Meanwhile, some of the country’s donors have openly criticised government for the huge out of court settlements—made to former officials who were unfairly dismissed following a change of leadership in April last year.

Common Approach Budgetary Support (Cabs) chair, Germany Ambassador Peter Woeste, last week described the payouts as “golden parachutes” and said the donors had raised the concern with government.

“We feel no one should be entitled to these golden parachutes. This amount; I calculated could feed over 3,000 poor families. This makes up the question; the question is about the gap between those on the top end of the salary structure and those of the lower end. But here in some of these cases, it is extreme and this is what I criticised,” Woeste said.

He said while there was encouraging progress on the fight against corruption there was more that needs to be done.

Among the officials government reportedly agreed to pay off millions outside court are former Anti-Corruption Bureau Director Alex Nampota (K70 million), former Admarc Chief Executive Officer Charles Matabwa (K82 million), former Reserve Bank Governor Perks Ligoya(K49 million), former Malawi Broadcasting Corporation (MBC) Director General Bright Malopa (K40 million), just to mention a few.

Meanwhile, former aides of the former president late Bingu wa Mutharika have filed a lawsuit against government over their dismissal following the regime change.

These include former presidential spokesperson Heatherwick Ntaba, State House Press Officer Albert Mungomo, Director of State Residences Edward Sawerengera and special advisor to the president Margret Chaponda.

However other law experts have also said as much as donors  may be right but legally these individuals are entitled if the rule of law is to prevail.

“ these payouts are in accordance to the law and if we are to adhere to the justice system then yes they have to be paid despite what the donors say.” Said Kampeni a prominent law expert.

“ the donors want rule of law to prevail and so it is, they should not complain now because they accused Bingu of the same “ said Kampeni

Some quarters are blaming the presidency of irresponsibly firing individuals without looking at the legality side of it but rather of personal hatred.

Indeed if the justice system is to prevail the pay outs are in accordance to the Malawian law and more are to be paid millions despite the ministers order.

Some have advised political leaders to understand that we are in a democratic society and firing of top government officials because of personal and political differences will have such consequences.

6 Responses to "Finance Minister Cancels All Multi Million Government Compensation Payments ” Will defend each case robustly”"

  1.  July 4, 2014 at 5:35 am

    Very energetic article, I loved that a lot. Will there be a part 2?

    Here is my weblog :: read moreÂ… []

  2. mapopa  March 5, 2013 at 8:08 am

    a five moba ndinu woola mumtima mwamva. Kutukwana kuchita kufika pamenepo? Ayi chepetsani kulemba zovunda pa public paper ngati apa. Komanso chizungu chanu choola ngati kulalata kwanu komwe. Mudalekeza pati ndi maphunziro anu. Pitani kwa Ken Lipenga an English teacher akakuphunzitseniko galamala ya chingelezi

  3. daph walker  March 5, 2013 at 12:19 am

    There will be more money spent in defending those cases. This government will grow weaker and weaker and the ordinary person will turn poorer and poorer. ‘Defending robustly’ is not for free.

  4. Five Moba  March 4, 2013 at 8:00 pm

    Fucken mother fucker Joyce Banda must take back all she fired to their respective position, if not then they must get their compasation no choice on that, and Kasamba and his friend they enriched themslves with the same copasation must paid back that stupid money, all these happen bcoz of this bitch who dont want to listen, now you can see the results, I think you can now get the point bcoz a white person has spocken, chindele chamuthu, its alaw, so let the law take its course, we do not follow white pipos law in here, and for you stupid Ken whom do think you are? Mbava ngati iwe, just an Engilish teacher, why can you just go back to your professtional than destroying our government ndi whule lakolo, machende ako chitsilu, you will lot behind bars

  5. Wanda Wanda  March 4, 2013 at 4:44 pm

    The MK20m that Kasambara paid to his fellow thugs should be reinstituted now and the case needs to be challenged in court. While I agree that the rest should be paid but this one was exceptional and needs to be paid back.

  6. Joyce  March 4, 2013 at 1:45 pm

    Tsono mufuna kuti Kasambara akakudyereni kuchipatala? Mwamva nkhwanga ili mmutu chifukwa mzungu wakalipa? A Ken?


Leave Comments Here