The Communication Workers Union of Malawi (COWUMA) has criticized the Reserve Bank of Malawi (RBM) for allegedly giving preferential treatment to government institutions —particularly parastatals — that have defaulted on pension fund remittances.

Speaking to Zodiak, Malawi Congress of Trade Unions (MCTU) Secretary General Hamilton Deleza expressed concern over what he described as RBM’s inconsistent enforcement of pension regulations.

He cited the Malawi Broadcasting Corporation (MBC) and the Malawi Postal Corporation (MPC) as examples of parastatals that have long failed to remit pension contributions.

“In recent times, we’ve seen the RBM act swiftly against private employers who default on pension remittances, yet it remains sluggish when dealing with government parastatals doing the same. A typical example is MBC and MPC, which have been in pension default for years,” said Deleza.

He further criticized the RBM for allegedly opening a pension default account at a commercial bank without consulting affected employees—a move he claims many workers are unaware of.

As of now, RBM officials have not issued a response to the allegations.

Under the law, all employees are required to contribute to a pension scheme as part of their retirement benefits.

However, there has been growing public concern over delays by employers - both public and private - in remitting these funds, leaving many workers uncertain about their financial future.