Court orders K753 millioncompensation for ex-OIBM staff
The Industrial Relations Court (IRC) has ordered the now-defunct Opportunity International Bank of Malawi (OIBM) Limited, now part of First Capital Bank, to pay K753 million to 117 workers who were retrenched in 2016.
This follows a decision by High Court of Malawi judge Thomson Ligowe on April 12 2023. He found the bank guilty of unfairly dismissing the 117.
The judge also ordered that the IRC re-assess the ex-OIBM employees’ compensation.
The ruling came after the bank had queried an initial K353 million compensation package that the IRC ordered in 2019.
The bank argued that the initial compensation was excessive.
After conducting a review, on June 27 this year IRC deputy chairperson for Mzuzu Registry Anthony Pitilizani Kapaswiche ordered the bank to pay the ex-staff K753.5 million in compensation.
The bank sought a stay of execution from the same court, and deputy chairperson Kapaswiche denied the stay on July 25.
However, on July 26 High Court Judge Ligowe granted a stay of execution to the Bank, which also stops any seizure of the bank’s property and scheduled inter partes hearing on August 3 2023.
In an interview, one of the ex-OIBM employees Aaron Kayira said the continued court battles are further delaying their effort to get compensation from the bank.
He said: “We won the case in 2019 but they appealed. And it has taken four years to get another judgement at the High Court of Malawi, which we also won.
“Yet, when damages were assessed, the bank appealed, lost the appeal and now it is stopping the Sherrifs of Malawi from executing the IRS order. This is unfair to us. We want justice to prevail.”
Lawyer representing the 117, George Kadzipatike, said yesterday although the delayed conclusion of the matters is caused by normal legal processes, he understands his clients’ frustration over this matter.
He said: “For the past eight years, they have been winning the court battles against the bank. They won before the IRC in 2019 before His Honour Kingsley Mulungu and panellists but the bank appealed to the High Court where the bank lost again in April 2023 when the matter came before His Lordship Ligowe.
“What is frustrating my clients is that the bank which has always been losing the battle, is preventing them from enjoying the fruits of their victory through incessant stay orders.”
Kadzipatike said he was working hard to ensure that the recent stay order should not last for four years like the one the bank obtained in 2019.
“The current stay order should be vacated immediately,” he said.
However, lawyer for the bank, Pempho Likongwe said they are dissatisfied with the assessment; hence, the stay pending appeal.
“On assessment, you can also appeal if you are dissatisfied, so there is an appeal on the assessment. So, when there is an appeal, you can apply to court for a stay and if the court agrees, they grant you a stay.
“The assessment is excessive, but also it doesn’t follow the rules because the Employment Act has rules on assessments and there are various judgments on that. So, we think it doesn’t follow the rules, and have the right to appeal and the court assesses whether to grant a stay or not and in this case, Justice Ligowe granted the stay,” he said.
Between 2011 and 2016, OIBM reported losses, which necessitated the management to close some branches.
The development led to the laying off of some employees, including the 117 applicants in the case.
