Ex-staff of defunct savings & loans companies to be paid salaries, related claims

The Receiver for the defunct Microfinance and Savings & Loans and Finance House will today commence negotiations with representatives of ex-staff of the companies.

This follows the decision of the Central Bank to pre-finance the full settlement of employee-related claims.

In a press release issued on 13th July 2020, Mr. Eric Nipah – Receiver for the Resolved Microfinance and Savings & Loans and Finance House announced the full payment of outstanding salaries and exit packages of ex-staff.

The statement informed that “The Receiver will in the week commencing Monday, 13 July 2020 engage with the authorised representatives of the ex-staff to agree on modalities for the payment of outstanding salaries and exit packages to ex-staff of these resolved institutions.”

The Receiver announced that the Asset Realisations phase, a key component of the receiverships is currently underway albeit at a relatively slow pace due mainly to Poor quality of assets of some of these institutions, Asset diversion, and Misstatement of a significant number of assets of some of these companies in the financial records of these resolved companies.

To tackle these challenges, the Receiver is compelled to undertake a detailed asset tracing and forensics exercise in collaboration with the Economic and Organised Crime Organisation (EOCO) to locate and recover these assets.

The statement further noted that the Receivership will only fully settle outstanding salaries and exit packages of ex-staff which have been duly validated agreed and in the resolution process.