By Isaac Salima:
People who used to work for cash-strapped Agricultural Development and Marketing Corporation (Admarc) have received K6.6 billion out of the K25 billion they expect from the State grain trader.
This is courtesy of a garnishee order, in which Admarc was ordered to pay the ex-workers 26 percent of the compensation claim.
The former Admarc workers have been seeking a K25 billion compensation payout from their former employer.
This follows an Industrial Relations Court (IRC) determination that found Admarc in the wrong over its decision to retrench workers in 2022.
In January, sheriffs seized some of Admarc’s property and also froze its bank accounts after it failed to pay the former employees.
However, lawyers for the claimants applied for the garnishee order.
A source has told us that when the claimants accessed Admarc’s frozen bank accounts, they found that it had K6.6 billion.
The court ruled that the money be given to, and shared among, the ex-employees.
Chairperson for the employees Alex Malikebu confirmed that they had received the money.
He added that they were waiting for the balance.
“We are still waiting to hear from the Ministry of Finance through the Secretary to the Treasury,” he said.
One of Admarc’s lawyers, Fransisco Chikavumbwa, said the matter was being handled by the Office of the Attorney General (AG).
AG Thabo Chakaka Nyirenda was yet to respond to our questionnaire.
The development means that Admarc has about K19 billion balance to pay the ex-workers.
After IRC ruled that the ex-workers be compensated, Admarc applied for a stay order pending hearing of the appeal.
The court rebuffed Admarc.
Admarc argued that its financial position was not that sound to pay the former workers.
In his ruling, IRC Deputy Chairperson Tamanda Nyimba ordered Admarc to, instead, pay 50 percent of the awarded amount (which is about K12.5 billion) to the employees pending the appeal.
Admarc also failed to pay 50 percent of the amount, culminating in sheriffs’ seizing its assets.
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