Ex-EAC workers, govt agree on sh45b

Nov 01, 2000

THE Government and the former employees of the defunct East African Community (EAC) have signed an out of court settlement in which the former is to pay at least sh45b retirement benefits, reports Hillary Nsambu.

THE Government and the former employees of the defunct East African Community (EAC) have signed an out of court settlement in which the former is to pay at least sh45b retirement benefits, reports Hillary Nsambu. The sh45.525,502,324 in pension arrears and other terminal benefits will be paid to the claimants. The amount was calculated by the inter-ministerial technical committee on the compensation of the ex-workers. The deal ends the five-year-old legal battle between the former employees and the Government. It was filed in court through Katende, Ssempebwa and Company Advocates in 1996. The EA Community disintegrated in 1977 during the military rule of Idi Amin. Each state got a share of the Community assets and they agreed that each state would pay its own nationals who were employed in the Community. Professor Frederick Ssempebwa, the lawyer for the ex-workers, signed on behalf of the plaintiffs (ex-workers). Mr Deus Byamugisha, the Acting Director of Civil Litigation, signed for the Government. Justice John Patrick Tabaro presided over the court. The Government will pay the money through the Ministry of Public Service. The workers will be paid pension arrears effective July 1, 1977 to the date of payment and thereafter, monthly pensions, paid in accordance with the Pension Act of the EAC Cap 11 and the Pensions Act 281, as amended by Decree 6/1978. The non-pensionable ones will receive service gratuity. The Government will also pay the provident fund contributions. The Government also agreed to pay cash in lieu of accrued leave. Ends.

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