Almost 250 employees of Financial Holdings Limited – FDH which has 80% shares in Malawi Savings Bank – MSB have lost their jobs.
Group Head of Marketing for FDH Financial Holdings Limited Sobhuza Ngwenya said this is part of the restructuring process the bank is undergoing to ensure business viability.
“We have followed the normal process in the restructuring process and we have followed the law, we started the consultations with Ministry of Labour to make sure that they are able to provide guidelines during the restructuring process”, Ngwenya explained.
Ngwenya added that the merger was approved by the Competition for Fair Trading Commission (CFTC). CFTC recognized that there is a situation which might happen during the restructuring process and recommended that the law should be followed.
“The key assurance that FDH gave during the merger was that FDH and MSB branches will not be closed but there was no assurance of job security,” said Ngwenya.
The firing of some FDH Financial Holdings Limited employees comes following the integration of FDH Bank and Malawi Savings Bank –MSB in 2015.