By Chisomo Phiri
Human rights advocate Edward Kambanje has defended the Reserve Bank of Malawi’s (RBM) K1.5 billion settlement involving Deputy Governor Henry Mathanga, arguing that the payment is the implementation of a lawful court judgment rather than a political favour.
The settlement has attracted widespread public debate following reports that RBM paid Mathanga K1.5 billion in benefits after his reinstatement to the central bank, ending a long-running labour dispute.
The payment stems from the Industrial Relations Court (IRC) judgment in Clemence Chinkono v RBMÂ (IRC No. 803 of 2022), delivered on November 14, 2025.
The court ruled that the RBM’s unilateral downward revision of employees’ salaries in December 2020 was unlawful and violated provisions of the Employment Act that protect employees from arbitrary reductions in earned remuneration.
In an interview with Maravi Post, Kambanje said the salary reductions affected several senior RBM officials and not Mathanga alone.
He said presenting the settlement as an isolated case creates a misleading public impression, as several other affected officials have also sought or received remedies arising from the same court ruling.
The human rights advocate further said the court also found that Mathanga had been unlawfully removed from his position and ordered his reinstatement, which took effect on January 1, 2026.
He said Mathanga was allegedly placed on forced leave and faced an unlawful attempt to reduce his contractual salary by more than 50 percent, prompting legal action.
According to Kambanje, the IRC intervened and eventually approved a consent order to resolve the dispute.
“This is not a political payout. It is a consent order issued by the IRC to amicably resolve a major labour dispute.Continuing a losing court battle over a clear-cut case of constructive dismissal would have exposed the state to massive financial damages and legal fees,” said Kambanje.
He added that Attorney General (AG) Frank Mbeta had indicated that Mathanga’s reinstatement took effect from January 1, 2026, and that the arrangement does not require the government to pay retroactive salary arrears.
Kambanje maintained that the settlement should be understood as the implementation of a judicial decision rather than a political gesture.
He said respecting court rulings promotes institutional integrity, upholds the constitutional guarantee of fair labour practices, and protects public funds by avoiding prolonged and costly litigation.
He also urged Malawians to examine the facts and court decisions before commenting on the matter.
“The RBM is simply implementing a court judgment. Public debate should be guided by the rule of law, judicial precedent and facts, not politics or misinformation,” he said.
The settlement involving Mathanga has continued to generate mixed reactions, with some members of the public questioning the payment’s impact on taxpayers, while others argue that implementing court judgments is a legal obligation that public institutions must honour.
