Mpinganjira - Malawi Savings Bank to merge with FDH

Mpinganjira – Malawi Savings Bank to merge with FDH

BLANTYRE (Malawi NewsNow) –There is no guarantee that hundreds of jobs to be transferred from Malawi Savings Bank (MSB) to FDH Bank as MSB will surrender its banking licence and merge with FDH Bank within 12 months according to FDH Financial Holdings chief executive officer Mr Thom Mpinganjira.

Mpinganjira says MSB employees will transfer to FDH but stressed that staff will not be guaranteed jobs AND MSB chief executive officer Mr Ian Bonongwe has been relieved of his position as the head of the bank.

He has been seconded to the FDH Financial Holdings’ Integration Management Office (IMO) effective September 7 2015.

Mr Teddie Chanza is acting CEO.

“We would like to assure staff members of both FDH and MSB that there will be security of employment from middle management and below,” Mpinganjira says in a circular to staff.

But clarified in an interview that the new management of the bank say they cannot guarantee jobs for senior managers.

“In matters of employment a job can never be guaranteed; it depends on performance.”

He adds: “To guarantee a job means whether one performs or not they will keep their job. That is not so in FDH and cannot be so in MSB and I doubt whether there is any organisation that does that.”

Meanwhile, Bonongwe has been appointed as banking strategy specialist in a multi-disciplinary team IMO headed by Mr Nathan Mpinganjira, coordinating a new operating model for the two institutions which will inform the decisions on jobs and people.

FDH bought MSB to tap into the strengths of the bank which has a network of 14 branches and 33 agencies and ATMs across the country, including rural and remote areas, as well as a personal and business customer base in excess of 420 000, according to Mpinganjira.

Government on July 2 2015 disposed of 75 percent of its shares in MSB which were acquired by FDH Financial Holdings Limited in a controversial deal that drew a backlash from members of Parliament (MPs) and civil society organisations (CSOs) who opposed the sale.