Zampost sued over K2.7m debt

ZAMBIA Postal Services Corporation (Zampost) has been taken to court by Rainbow Capital Limited over a K2.7 million debt.

According to documents filed in the Lusaka High Court, in 2022, Zampost and Rainbow Capital entered into an agreement whereby the latter would provide salary advances and loans to the defendant's eligible employees.

In the agreement, Zampost is obligated to deduct from the employee's payroll on a monthly basis, the salary advances and loans repayments due to Rainbow and remit the same until full and final payment of the credit facilities.

"That the defendant has been deducting the monthly repayments from its employees in accordance with the agreement and despite this, the defendant has contrary to the agreement not been remitting the said deductions/repayments to the plaintiff," it submitted.

Rainbow stated that despite Zampost failing to remit the said money without justifiable reason, it last month issued a circular to its employees, notifying them of no more deductions on their payroll on behalf of the Rainbow with effect from March 31, 2024, a conduct contrary to the agreement.

It lamented that it had suffered financial loss due to the behaviour of Zampost.

Rainbow Capital is seeking an order that Zampost pays K2, 767, 563 being the due and outstanding payment from March 2023 to the date of this writ.

It is also seeking damages for breach of agreement of February, 2022 and loss of use of funds

It wants an order for an injunction restraining Zampost or their agents from enforcing circular no.03/2024 which circular is in total breach of the agreement of February 2022 entered between them.