Reserve Bank of Malawi (RBM) has sent on forced leave its head of Internal Audit Department Clement Chinkono amid an ongoing forensic audit at the financial institution.
In an interview on Thursday, Chinkono confirmed that he was told to proceed on leave.
“I can confirm that I am on leave, but I don’t have any details on why I was asked to proceed on leave,” he said.
Sources at the central bank said Chinkono’s forced leave came amid fears that some officials may allegedly interfere with the ongoing forensic audit.
The sources said the development has come amid tension within the central bank of the audit process which has coincided with the decision by the board to revise downwards salaries of some senior bank employees.
RBM spokesperson Onelie Nkuna was yet to respond on Chinkono’s fate.
But in another e-mailed response, she confirmed that the central bank was reviewing several operational and administrative policies.
The developments come at a time the Office of the President and Cabinet (OPC) and RBM are tussling with former RBM governor Dalitso Kabambe over his K1 billion claim.
Following his removal by President Lazarus Chakwera in July 2020, Kabambe, who was appointed to head the central bank by former president Peter Mutharika in April 2017, filed a K1 billion claim as terminal benefits and breach of contract. He had nine months and 16 days remaining on his RBM contract at the time he was replaced with Wilson Banda.
But in an interview this week, Attorney General Chikosa Silungwe, whose office provided a legal opinion on the matter to the OPC, said government will reject the claim.
Kabambe recently came in the limelight following revelations that he hiked his monthly salary as governor from K8 million at the time of his appointment to around K27 million when he left office.
The governor of RBM also chairs the institution’s board which, among other things, works out remuneration for the governor, directors and other members of executive management.