Agricultural Development and Marketing Corporation (Admarc) has started paying K495 million in compensation to 110 former employees for unfair labour practices.
Receipts and correspondence we have seen show that the State produce trader has so far paid K383 million in four instalments, leaving a balance of K112 million.
Records show Admarc paid K50 million on July 15, K111 million on August 8, and two further instalments of K111 million each on September 28 and October 1 2026.
Admarc lawyer Francisco Chikabvumbwa said his client will pay the final instalment within October.
“You will see, therefore, that all payments have been through the court and in terms of the consent order, only one instalment is outstanding. The applicants’ lawyers are aware of this,” he said.
The group of employees, led by Tamani Kaunda, worked at various Admarc depots since 1992.
From June 2018 to December 2020, they were appointed as acting unit market officers, acting district managers and acting transport officers in line with Clause 4.1 of its Conditions of Service of 2009.
They served in acting capacities for periods ranging from two to four years until January 31 2023, when they were retrenched.
The employees, represented by lawyer Leonard Mbulo, commenced proceedings on October 7 2024, claiming damages for unfair labour practices and interest.
On March 9 2026, the Industrial Relations Court (IRC) sitting in Mzuzu ordered Admarc to pay the 110 former employees K495 million, being K4.5 million each, within 14 days.
In his ruling, IRC deputy chairperson Anthony Kapaswiche said Admarc did not file a response to the claim despite being served on October 14 2024.
The applicants filed for default judgement on October 31 2024, which was entered on November 4 2024.
The court scheduled assessment for February 24 2026, but Admarc did not appear despite being served.
The court proceeded to hear the matter and delivered the assessment order.
Admarc did not comply with the order. Instead, it filed an ex-parte application to stay execution of the ruling pending an application to set aside the compensation order.
The IRC granted the stay on condition that Admarc pays the K495 million into court within seven days, as the application was filed after expiry of the payment period.
Admarc then filed another application in the High Court for stay of execution pending appeal.
On May 15 2026, Judge Thomson Ligowe rejected the application.
Later, on May 22 2026, the parties, through the IRC, reached a consent agreement that the compensation be paid into court in instalments between June and September 2026.
The consent order reads in part: “The assessed sum of K495 million shall be paid by the respondent into court in instalments. The respondent shall before June 1 2026 pay K50 million. The balance of K445 million shall be paid in four equal monthly instalments.”
The group’s chairperson Austin Panja said they will file for contempt of court if the company fails to honour the final payment.
“If Admarc fails to make the last payment, then the law will take its course. All applicants should remain calm as we are waiting for the final payment and the way forward from the court,” he said.
