155 former Investrust Bank employees sue Bank of Zambia over compulsory liquidation

A legal battle has erupted between 155 former Investrust Bank Plc employees and the Bank of Zambia (BoZ) over the compulsory liquidation of the bank.

The ex-employees, led by Langham Joseph Mwanza, are seeking compensation for significant losses and damages stemming from the liquidation.

Central to their case was the BoZ’s decision to transfer Investrust Bank’s prime assets to Zambia Industrial Commercial Bank, which they argued was effectively a merger.

The plaintiffs claimed that this transfer should have accounted for employee liabilities.

The group is pursuing several court orders, including a declaration that the BoZ’s failure to follow the legal redundancy process was unlawful.

They are also seeking an injunction to prevent any further actions by the defendants that could harm their rights and interests.

The former employees alleged that the BoZ’s decision to execute the purchase agreement prior to liquidating the bank was made in bad faith, without proper consultation or compensation.

They described this move as “asset stripping,” which had caused them severe financial and emotional distress.

The Bank of Zambia placed Investrust Bank under compulsory liquidation on July 8, 2024, citing insolvency.

Following this, the bank’s assets were transferred to Zambia Industrial Commercial Bank, which acquired 16 of Investrust Bank’s 19 branches.

The plaintiffs assert that they were not informed of their entitlements under the redundancy package and that the liquidators lacked sufficient assets to cover their terminal dues.

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