The Office of the President and Cabinet (OPC) has finally approved the retirement of former Reserve Bank of Malawi (RBM) governor and UTM Party president Dalitso Kabambe, bringing closure to a five-year standoff over his employment status in the public service.
In a letter signed by Secretary to the President and Cabinet Colleen Zamba, Kabambe’s request to retire has been approved with effect from January 16, 2025. This decision follows years of back-and-forth between Kabambe and the government over whether he was still a civil servant after his appointment as RBM governor in 2017.
The letter acknowledges correspondence from Kabambe’s lawyers, TF & Partners, dating back to 2020, where his option to retire early under the Malawi Public Service Regulations was outlined. Despite this, Kabambe maintained that he had resigned “long time ago,” a claim government had previously resisted, insisting his position at the central bank was a secondment from the civil service.
“I have received the letter, but let me reiterate, I resigned a long time ago,” Kabambe said in a brief interview on Thursday.
The delay in approving his retirement came amidst his interdiction in 2023 following allegations of falsifying documents during his tenure as RBM governor. The accusations, which Kabambe has consistently denied, were tied to claims that the documents were intended to convince the International Monetary Fund that Malawi was meeting Extended Credit Facility benchmarks. Kabambe has described the charges as politically motivated.
The OPC’s approval of his retirement effectively clears him of the restrictions imposed on civil servants engaging in political activities, as enshrined in Section 193(2) of the Constitution. This opens the way for Kabambe to fully immerse himself in politics as UTM Party president without legal or administrative hurdles.
Kabambe, who also served as Principal Secretary for Foreign Affairs prior to his appointment as RBM governor, was dismissed from his position at the central bank in 2020 following the change of government. He has since filed a K1 billion claim against the government for terminal benefits and breach of contract, arguing that he was unfairly removed with nearly 10 months left on his RBM contract.
The approval of Kabambe’s retirement may provide clarity for both parties, but legal and financial claims stemming from his dismissal could still linger. Meanwhile, Kabambe is expected to use this decision as an opportunity to reinforce his political standing, especially as he continues to build his profile ahead of upcoming elections.
Observers say the protracted delay in resolving his retirement could play to Kabambe’s advantage politically, as he may leverage it to frame himself as a victim of political persecution. How he positions himself moving forward will determine the full impact of this development on his career.
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