Business Reporter
THE People’s Own Savings Bank (POSB) has firmly rejected recent allegations of workplace affairs and corruption, asserting that all management decisions are fully aligned with established policies and procedures.
Last Thursday, The Humanitarian Post, a publication known for its pro-poor stance, published a report containing accusations of scandals at the country’s oldest financial institution.
These included claims of top management receiving preferential loans, excessive perks, discounted vehicle purchases, and favoritism in promotions, particularly involving women with alleged personal relationships.
In a detailed response, POSB’s Public Relations Manager, David Makacha, categorically denied the allegations, insisting that all operations and decisions made by the bank were transparent and above board.
“The bank is currently executing a three-year Transformation Strategic Plan, which focuses on four core pillars: Brand and Marketing, Finance, Digital and Data, and People and Culture. This plan is designed to align our workforce with the strategic priorities of the bank, ensuring successful implementation of key projects, such as the Omnichannel and Core Banking System initiatives,” Makacha explained.
He further clarified that as part of the transformation, several staff members had been reassigned from their usual positions to support these strategic projects and participate in skills development.
“These moves are either temporary or project-based, and in some cases, permanent based on organizational needs. Over 100 staff members have been reassigned, but none of these changes are promotions or new appointments,” he added.
Makacha emphasized that no vacancies were created to accommodate these reassignments, and all staffing decisions adhered strictly to operational requirements and human resources policies. He also addressed claims of retrenchments, stating that four officials allegedly let go were actually on fixed-term contracts, which expired on December 31, 2025, and their positions have remained vacant since.
Responding to allegations about the purchase of company cars at discounted prices, Makacha again denied any wrongdoing, stressing that the process followed the bank’s approved Human Resources policies and procedures. According to the bank’s guidelines, employees are eligible to purchase service vehicles at book value after five years of service or once a vehicle reaches 150,000 kilometers, whichever comes first. He explained that these policies apply uniformly to all staff, with no exceptions.
“To clarify, the vehicle’s market value is determined by three independent valuers, and the employee is then required to pay the tax benefit on the difference between the book and market values. This is standard practice and fully compliant with accounting regulations,” Makacha said.
Finally, Makacha addressed the issue of staff loans, emphasizing that POSB provides loan facilities based on established policies, where loan limits are proportionate to an employee’s income and in accordance with prudent lending principles. He denied any claims of discrimination or preferential treatment.
POSB has strongly rejected all the allegations as unfounded and maintains that its operations remain transparent and fully compliant with established policies and regulations.
