Friday, April 12, 2024
HomeLocal NewsSavenda to lay off more than 800 workers

Savenda to lay off more than 800 workers

…company failing to pay salaries because operational bank account seized, frozen

By NATION REPORTER

OVER 800 Zambians employed by Savenda Group of Companies are to lose their jobs as the company has now sent all of them on forced leave.

Savenda Group of Companies says it has been compelled to send its workforce of more than 800 on forced leave because the company has been unable to access money to pay salaries and meet other operational expenses.

Savenda Group Human Resources Director Sylvester Kasonde has announced the pending laying off of the workers in a letter to Labour Commissioner in the Ministry of Labour and Social Security.

In a letter dated March 1, 2023 addressed to the Labour Commissioner and captioned: “Re Decision to send Savenda Group employees on forced leave,” Mr Kasonde said the more than 800 employees shall be sent on forced leave effective April 5, 2023.

He said Savenda Group had decided to send its workforce on forced leave because their main general bank account used for operations had been restricted by the State and that it had been difficult to access funds to pay salaries and other operational costs. 

Mr Kasonde explained that the non-payment contracts already executed by government institutions in spite of the payments being contractual, undisputed and long overdue had exacerbated the liquidity challenges the company was facing.

He explained that the restriction of the operational bank account and the non-payments of contracts had negatively impacted the operations of Svenda Group of Companies as the liquidity challenged had become the order of the day.

Mr Kasonde said the company had decided that it could not continue to accrue further liabilities which he said would not be able to be honour in future.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Observer. on SEX PILLS IN WATER
Dr. I.P.A. Manning on THE BAN OF POACHERS IN ZAMBIA
Lulumbi on EXPENSIVE WORSHIP
Patrick Bwalya on THE ALEX CHOLA FACT-FILE
Patrick BWALYA on DRIVER HACKED, LEFT FOR DEAD