Human Rights Consultative Committee (HRCC) Board Chair Robert Mkwezalamba has issued a strong warning over the way Malawi has managed pension funds, saying years of delays, poor leadership and fraud have pushed many retired civil servants into poverty and stripped them of the dignity they deserve after serving the nation.
Speaking in an interview in Lilongwe, Mkwezalamba welcomed the government's recent move to clear the long-standing pension backlog but stressed that the development should not be celebrated as a major victory. Instead, he said it should be seen as an emergency effort to correct years of failure that left many retired public servants struggling to survive.
Mkwezalamba said for decades many civil servants have worked their entire lives for the country only to face hardship after retirement because their benefits were delayed or mishandled. He said while politicians and officials often praise the contribution of civil servants in public speeches, the reality on the ground has been very different, with many retirees waiting years to access money that rightfully belongs to them.
According to Mkwezalamba, one of the biggest problems affecting the pension system is poor management of pension funds, which he said has been caused by a lack of leadership foresight. He cited the MK800 billion pension fund, arguing that much of the money has been sitting idle in banks instead of being invested in productive ventures that could grow the fund and secure the future of pensioners.
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Mkwezalamba said pension funds should not remain stagnant. He compared the situation to farming, saying pension funds should be treated like Irish potatoes that must be planted and nurtured to grow. In his view, money that sits in bank accounts without being invested slowly loses its value and fails to benefit the people it is meant to serve.
He defended efforts to invest pension funds in assets such as real estate, stocks and bonds, saying such investments are necessary if Malawi wants to protect the value of pension savings. Mkwezalamba pointed to Kenya as an example, noting that a large part of Nairobi's modern infrastructure and buildings have been developed using pension funds. He argued that Malawi should adopt a similar approach instead of allowing the funds to remain idle while retirees continue to struggle.
Mkwezalamba also expressed concern about the impact of delays in paying pension benefits. He said inflation continues to erode the value of money, meaning that when retirees receive their benefits years after retirement, the money is often worth far less than it was when it was originally due.
He described the situation as deeply unfair, noting that in some cases pension payments are only processed when the beneficiaries are already seriously ill or have died. According to Mkwezalamba, this defeats the whole purpose of social protection, which is meant to support people when they retire and can no longer work.
Mkwezalamba further condemned employers who fail to remit pension contributions on time, describing the practice as a serious betrayal of workers. He said when employers withhold contributions, they deny pension funds the opportunity to grow through investment and ultimately reduce the amount that beneficiaries will receive in the future.
At the same time, Mkwezalamba responded to calls by some junior civil servants who are demanding the suspension of the pension fund system, describing such demands as misguided and dangerous. He warned that abandoning the pension fund would be a serious mistake that could leave workers even more vulnerable in the future.
While acknowledging that the pension law has had weaknesses in the past, Mkwezalamba said reforms have already been made to improve the system. He recalled that when the law was first introduced in 2011, it contained several inconsistencies which led to concerns being raised at the time. However, he said the law has since been revised following sustained advocacy and engagement.
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According to Mkwezalamba, rather than dismantling the pension system, the focus should now be on strengthening it so that it can truly provide security and dignity for retirees. He emphasized that a well-managed pension system can play a major role not only in protecting retired workers but also in supporting national economic development through strategic investments.
He also called for stronger safeguards within institutions responsible for managing pension funds, warning that fraud and corruption in some offices have weakened public trust in the system. Mkwezalamba said improving transparency, strengthening oversight and ensuring faster processing of benefits will be critical in restoring confidence.
He concluded that Malawi must change the way it treats the retirement savings of its public servants. According to him, pension funds should not be handled as idle money waiting to be spent, but as a powerful economic resource that can grow the economy while protecting the livelihoods of those who have spent their lives building the nation.
