Malawi News

Court grants 21 days for submissions in PCL case

Court grants 21 days for submissions in PCL case

By Benadetta Chiwanda Mia:

The Blantyre Industrial Relations Court Deputy Chairperson Tamanda Nyimba, has given both Press Corporation Limited (PCL) and the applicants 21 days to file written submissions in the high-profile case where three former senior executives are demanding over K33 billion for unfair dismissal.

The executives—former Group CEO George Partridge, former Company Secretary Benard Ndau and former Group Chief Financial Controller Elizabeth Mafeni—are seeking compensation for what they claim were unfair dismissal and unlawful labour practices during their termination in 2021.

The case, which resumed on Friday, follows an adjournment in December 2024, during which the defence cross-examined witnesses for the applicants.

During Friday’s proceedings, the court examined evidence presented by PCL regarding whether financial loss was incurred due to the termination of the executives and whether further compensation is warranted.

Applicants’ lawyer, John Suzi Banda, cross-examined PCL’s witness, current Chief Finance and Administration Executive and Company Secretary Moureen Mbeye.

Banda asked whether payments made to his clients were meant for compensation for wrongful dismissal, to which Mbeye responded that it was severance payment.

Banda also questioned whether there was a court order before the payments were made, to which again Mbeye clarified that the company made the payments without a court mandate, aligning with applicable laws as severance and not as compensation for unfair dismissal.

In her testimony, Mbeye confirmed that PCL paid K179 million to Ndau, K448 million to Mafeni, and K452 million to Partridge upon their dismissal.

She submitted that the severance payments were comprehensive and covered all necessary expenses related to the dismissals.

Moreover, Mbeye testified that the termination of contracts for the three was not prompted by misconduct. She noted that the former executives were actively involved in the functional review process and were aware of the developments leading to their exit.

In an interview, Suzi Banda remarked that the cross-examination highlighted key issues for the court’s consideration in determining compensation for unlawful dismissal.

“Our focus was on highlighting the treatment of the applicants, decision-making processes by the board, and other relevant issues which in our opinion do point to a high-handed approach,” Banda said.

PCL’s lawyer, Patrick Mpaka, expressed confidence in the evidence supporting the corporation’s stance. “I think we have given our side of the story through the witness that the corporation brought forward and it demonstrated that while procedural errors might have occurred during termination, substantial severance payments were made. The decision now lies with the court whether there is any need to award any more money than was already given,” Mpaka said.