Some workers at the Mzuzu City Council (MCC) are dragging their employer to court for failure to remit slightly over K15 million to the council’s Community Savings Programme in Malawi (Comsip) cooperative.
The MCC has in recent years failed to make the payment despite deducting sums of money from the employees’ salaries every month.
This has not gone down well with the concerned group of employees, who claim have, over the years, been deprived of their right to economic stability hence their decision to engage the court.
The legal proceedings against the MCC come after its failure to comply to the seven-day notice given to settle the amount in question with 15 percent annual interest.
Lawyer for the aggrieved party, George Kadzipatike, who also filed the notice, confirmed the development yesterday.
The lawyer disclosed that the MCC is also expected to square the interests of the savings, damages and legal fees, which raises the amount to over K20 million.
“ If we do not receive the total sum of MK23, 792,914.91 within seven days from the date hereof, we shall commence legal proceedings against Mzuzu City Council to claim the said sum of money plus damages for loss of business and further legal costs,” reads the notice in part.
He added that the council has been adamant on the matter, such that it has compelled his clients to seek legal redress.
“We have not received any response on that demand. We are therefore proceeding to file the matter in court,” Kadzipatike said.
When contacted, MCC’s lawyer Victor Gondwe said he is aware of the matter and is awaiting instructions from the council on how to proceed.
“Otherwise, as a lawyer, I would have preferred an in-house settlement,” Gondwe said.
Mzuzu City Council Chief Executive Officer Macloud Kadam’manja could not be drawn to comment much, saying it’s an internal matter.
The MCC has of late been battling a number of lawsuits over unpaid debts, with councillors recently resolving to court Finance Minister Goodall Gondwe for a possible bailout.
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