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A total of 747 former employees of the now-defunct Meridian Biao Bank have initiated legal proceedings against Madison Life Insurance Company and the bank, seeking immediate payment of their long-overdue terminal benefits.
The case has been filed in the Lusaka High Court, nearly 30 years after the bank’s liquidation.
Read more: Ex-workers of defunct Meridian Bank demand payment of terminal benefits, gratuities
The plaintiffs, led by Patrick Mwale, asserted that their pension contributions—deducted from their salaries and matched by the bank—have never been disbursed as promised.
“We dedicated years of service to the bank, and yet, decades later, we are still fighting for what is rightfully ours,” Mwale stated.
According to court documents, Meridian Biao Bank was placed under liquidation on May 19, 1995, under President Frederick Chiluba’s administration.
The bank had an agreement with Madison Life Insurance to manage a pension scheme for its employees, wherein five percent of the employees’ gross salaries were deducted monthly, with the bank contributing an equal amount.
Despite these contributions, the employees have not received their entitled benefits.
The plaintiffs claimed that when the Bank of Zambia shut down Meridian Biao Bank in May 1995 in an effort to find an investor—an attempt that ultimately failed—the bank was compulsorily liquidated in October of that year.
On October 15, 1995, all employees received termination notices, in accordance with Section 104(2)(a) of the Banking and Financial Services Act No. 21 of 1994.
The lawsuit asserts that the former employees were entitled to pension benefits as per the defined contribution scheme, which should have included their personal contributions, the bank’s matching contributions, and an additional five percent interest compounded annually.
However, they allege that Madison Life Insurance has failed to fulfill its statutory obligations.
“The failure to pay our pensions has not only caused financial hardship but also deep mental anguish. Many of us have struggled to survive, while others have passed away waiting for justice,” stated the plaintiffs.
Despite numerous efforts over the years—including formal payment requests, demand letters, and appeals for access to human resource and accounting records—the plaintiffs say they have not received a fair resolution.
While Madison Life Insurance has admitted liability for at least 223 of the 747 claimants, the plaintiffs dispute the proposed amounts, arguing they are erroneously calculated.
Adding to the controversy, Madison Life claims that a portion of the pension funds was transferred to the bank in 1995 to facilitate payments, yet the plaintiffs insist that no such payments were ever made to them.
This, they argued, amounts to a breach of duty by both the insurance company and the bank, who failed to honor the pension agreement.
In their lawsuit, the former employees are demanding an order for the immediate payment of their pension benefits and interest on all outstanding amounts.
They are also claiming damages for financial loss and emotional distress.
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