Operations at Mphunzitsi SACCO, formerly known as Thyolo Teachers SACCO, have been brought to a standstill after workers staged a strike on Tuesday, accusing Chief Executive Officer James Tembo of corruption, maladministration, and poor welfare practices.

The disgruntled employees have pasted their grievances at the SACCO’s headquarters in Thyolo, calling for Tembo’s immediate removal, whom they accuse of “running down the institution through abuse of power and corruption.”

Speaking on behalf of the striking staff, Anthony Jailos and Collins Nanlala said the strike follows “months of frustration over unaddressed grievances and alleged intimidation by management.”

They said that they also forwarded their concerns to the financial regulator, Reserve Bank of Malawi, Ministry of Trade and Labour.

“The CEO has created a toxic working environment, introducing performance contracts that have left employees demoralized,” said Jailos. “He has changed staff contracts without consultation, frustrated efforts to register our union, and promoted people based on nepotism rather than merit.”

The workers further alleged that management has ignored multiple formal complaints submitted through official channels, forcing them to take industrial action.

“We have tried to engage management in a respectful and professional manner, but our concerns have been repeatedly brushed aside,” said Nanlala. “We are left with no choice but to demand accountability and fairness.”

However, when contacted, CEO James Tembo declined to comment directly and referred all questions to the SACCO’s Board Chairperson, Flora Seyama, who dismissed the strike as “illegal,” saying the workers gave a one day notice which is against law.

She said “The workers only gave a one-day notice, which is contrary to labor procedures, I wrote them last night that this is an unacceptable” Seyama said. “The board had already engaged a consultant to help resolve the impasse, but some employees snubbed the meeting to hear the outcome.”

Seyama further suggested that some of the resistance stemmed from the SACCO’s new strategic direction aimed at restructuring operations and introducing performance-based contracts.

For now, operations at Mphunzitsi SACCO remain paralyzed.