A buoyant team from National Bank of Malawi (NBM) plc led by its Chief Executive Officer (CEO) Harold Jiya appeared before the Parliamentary Accounts Committee (PAC) in Lilongwe where they emphasised on the importance of customer confidentiality and the rule of law while respecting the jurisdiction of Parliament on the inquiry.
The Bank was appearing before PAC which is investigating the controversial sale of Amaryllis Hotel by the Public Pensions Trust Fund (PPTF).
NBM Head of Legal and Company Secretary Zunzo Mitole flanked by Jiya and NBM Chief Risk Officer Charles Ulaya, said banks are limited with respect to the customer information that they can give out.
“The Data Protection Act, under section 8, prohibits the disclosure of customer data or information without the explicit consent of the customer. Also, the Financial Crimes Act under section 24(1) prohibits the disclosure of the fact that a suspicious transaction has been made or even that a suspicion was formed with respect to a transaction.”
“Meanwhile, there is also The National Assembly (Powers and Privileges) Act provides that any witness appearing before Parliament or a Committee of Parliament is immune from being sued for any statements made to Parliament or a Committee of Parliament, meaning that a witness can disclose anything without fear of repercussions.”
“There is therefore a conflict between this Act and the Financial Crimes Act, the Data Protection Act the Directive on Financial Services (Fair Treatment of Consumers) 2024.
“In law, where two laws are in conflict with each other, the one that takes precedence is the one that addresses the issue at hand or in dispute.”
She therefore said that the Bank was obliged to follow the Financial Crimes Act and the Data Protection Act and would not disclose anything.
“It is our view that since these two laws are superior to the National Assembly ( Powers and Privileges) Act, legal practice therefore demands that the bank should not disclose any FIA reporting and any customer data,” explained Mitole.
The bank did not disclose any transactions from the account which received the proceeds from the sale of the hotel by PPTF.
Jiya explained that they complied with regulations governing the banking industry.
PAC Chairperson Steve Baba Malondera suspended the meeting saying they will invite the bank again after looking at the relevant laws so that they get the information they are looking for.
“where two laws are in conflict with each other, the one that takes precedence is the one that addresses the issue at hand or in dispute.”
Zunzo Mitole
NBM Head of Legal and Company Secretary
