Help us, ex-UBZ employees plead

PRESIDENT Edgar Lungu should intervene and ensure that ex-United Bus of Zambia (UBZ) employees are paid their terminal benefits, UBZ representative John Nyirongo has said.

Pastor Nyirongo said 475 former UBZ employees out of 1,200 have died without getting their terminal benefits.

He said the former employees have on several occasions written to Secretary to the Cabinet and petitioned President Edgar Lungu to no vail.

“Over 475 of our colleagues have died without getting their terminal benefits and more people will die if we are not paid, we therefore appeal to the Head of State to intervene and ensure that former UBZ employees are paid,” Pastor Nyirongo said.

Properties belonging to the United Bus Company of Zambia (UBZ) worth about US$5.5 billion have vanished after liquidators handed them back to Government in 2001.

The properties were supposed to be sold off to pay ex-workers’ terminal benefits following the liquidation of the company.

According to the appeal petition by ex UBZ employees, addressed to the President and dated October 8th, 2017 by the Committee of Inspection for UBZ (in liquidation), the liquidators who were engaged managed to dispose of some properties and proceeds were used to clear off dividends for majority of the creditors.

The initial letter indicates that the first liquidator, R. M Sombe in his final report indicated that the terminal benefits of former employees were agreed to be treated outside the liquidation law.

It states that the joint liquidation team comprising C. Lumpa, A. I. Kalaluka and C. Mabutwe who were later engaged by Government found almost all movable assets and few properties had been sold leaving residential properties as the bulk of the remaining assets.

“To our surprise on October 9th to 13th, 2006, the fourth Dividend payment was conducted leaving out former workers who were unsecured creditors,” the latter reads in part,” the petition reads in part.

In 2001, upon expiry of agreements and payment of outstanding charges, the liquidators handed over all the remaining 82 properties worth about US$5.5 billion to Government through the Ministry of Finance.

The properties were handed back on agreement that the houses be sold to ex-employees by deducting the price from their terminal benefits or they be sold to clear the dues.

To the surprise of the committee and ex-workers, the Secretary to Cabinet’s office referred the former employees back to the liquidators for payment of terminal benefits when the agreements had expired and properties handed to the State.

The State made it clear that it did not have anything to do with the terminal benefits for UBZ workers.

In a petition letter to the new Secretary to Cabinet, Simon Miti dated July 3, 2020, the committee pleaded that the matter be brought to a logical conclusion.

The committee indicated that the former UBZ workers had still not been paid their dues and did not benefit from the firm’s properties.