The 747 former employees of the defunct Meridien BIAO Bank Zambia Limited (MBBZ) have filed a lawsuit in the Lusaka High Court against Madison Life Insurance Company Zambia Limited and the bank, in liquidation.
The former workers are seeking immediate payment of their terminal benefits, which they claim have been outstanding since the bank’s liquidation in 1995.
Patrick Mwale and 746 others, allege that during their tenure, a pension scheme was established wherein five percent of their gross monthly emoluments were deducted as contributions.
These contributions were purportedly matched by the bank and managed by Madison Life Insurance Company.
However, following the bank’s closure and subsequent liquidation in October 1995, the plaintiffs asserted they have not received their entitled pension benefits, including both their contributions and those of the bank, plus five percent interest compounded annually.
They contended that Madison Life Insurance Company has breached its statutory duty by failing to provide the owed benefits and by not delivering proper account statements detailing individual member contributions.
Despite multiple attempts to resolve the matter,such as written requests for payment, demand letters, and appeals for records,the ex-employees claim that their efforts have been met with inadequate responses.
Mwale stated that this has had financial and emotional toll on the former employees.
“For over 28 years, we have endured financial hardships and mental anguish due to the non-payment of our rightful benefits,” he stated.
“It’s imperative that Madison Life Insurance Company fulfills its obligations to prevent further suffering.”
They are seeking an order for the immediate payment of their pension benefits, interest on the outstanding amounts, damages for financial loss and distress, coverage of legal costs, and any other relief the court deems appropriate.
