Mphwiyo payout ruling set aside


The Malawi Industrial Relations Court has set aside its ruling which ordered Malawi Government to pay former budget director Paul Mphwiyo all the money he was entitled to receive since he was removed from payroll in 2014.

The Industrial Relations Court in September delivered a default ruling after Mphwiyo sued the government for interdicting him without pay.

Attorney General Thabo Chakaka Nyirenda ten applied for a stay order to put aside the default judgement so that his office should file defence on the issue.

Thabo Chakaka Nyirenda

Industrial Relations Court Deputy Chairperson Howard Pemba made a ruling on the issue on Monday, November 8.

He said the state successfully argued that there is a defense on merits and has to be tested at trial.

Pemba then allowed the state to formally file their defense and to serve it to Mphwiyo within 14 days. A pre-hearing will thereafter be conducted on the issue.

Mphwiyo’s suspension in 2014 came after he was arrested over the theft of K2.4 billion in government funds, in the scandal popularly known as Cashgate.

The former Budget Director dragged government to court, saying the suspension saw him losing benefits such as provision of a car with option to buy, fuel allowance of 250 litres per month and airtime allowance of K20,000 per month.

In a Judgement dated 1st September, 2021 the Industrial Relations Court ordered Government to give Mphwiyo the money he would have received over the course of the seven years taking into account salary hikes implemented over the years. The court also told government to lift Mphwiyo’s suspension.

“The court has ordered Human Resources Management and Development should forthwith reinstate the applicant on government pay roll. The interdiction of the Applicant without pay is unlawful, illegal and amounts to unfair labour practice,” reads part of the judgement.