By Isaac Salima & Wezzie Gausi:
The Agricultural Development and Marketing Corporation (Admarc) has paid an additional K12.5 billion to its former employees as compensation.
The grain trader recently paid K6.6 billion to the ex-employees, bringing the total to K19.1 billion.
This payment forms part of the K25.5 billion compensation ordered by the Industrial Relations Court (IRC) after finding Admarc guilty of unlawfully retrenching its workers in 2022.
The ex-employees’ lawyer from Golden and Law confirmed the payments Tuesday.
“We collected about K6.6 billion through the attachment of funds in various financial institutions. Admarc has paid K12.5 billion towards the debt following discussions we had,” he said.
He added that the amount had been transferred to the ex- employees’ accounts.
Chairperson of the former workers, Alex Malikebu, requested more time to gather details on the issue.
Admarc Chief Executive Officer Dan Makata confirmed the payments to the former employees.
In January this year, sheriffs seized some Admarc property and froze its bank accounts after the government-owned produce trader failed to pay the former employees.
However, the claimants’ lawyers applied for a garnishee order.
When the claimants accessed Admarc’s frozen bank accounts, they discovered K6.6 billion.
The court ruled that the money should be distributed among the employees.
After the IRC made its ruling on the compensation, Admarc applied for a stay of the order until the appeal could be heard, but the court declined and imposed conditions.
Admarc argued that its financial position was not strong enough to pay the employees.
In his ruling, IRC Deputy Chairperson Tamanda Nyimba ordered Admarc to pay 50 percent of the awarded amount (approximately K12.5 billion) to the employees pending the appeal.
Admarc also failed to pay the 50 percent of the amount, which led to the seizure of its assets by the sheriffs.
Meanwhile, the government has appointed a new Board of Directors for Admarc, effective March 26, 2025.
According to a press release signed by the Comptroller of Statutory Corporations, Peter Simbani, the new board comprises lawyer Pempho Likongwe as chairperson, along with members Rev. Archwells Moffat Katani, Daniel Alfred Chatonya, Constance Tcherani, Olivia Mchaju Luwewe, Inkosi Msakambewa and Sella Msiska.
The three ex-officio members include the Secretary for Agriculture, the Secretary to the Treasury and the Comptroller of Statutory Corporations.
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