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Business Reporter
THE Supreme Court has ordered Turnall Holdings to pay its former managing director his terminal benefits, with the Zimbabwe Stock Exchange-listed company issuing a statement the judgment may have a “material impact” on the group’s profitability.
The protracted labour matter related to unpaid terminal benefits contractually due to Mr Caleb Musodza, which have been outstanding for more than six years since September 2016. On October 28 this year, the Supreme Court made an adverse judgment against the construction group, ordering it to pay Mr Musodza his terminal benefits.
Mr Musodza and the company’s financial director Mr Kennias Horonga left the company in 2016 following a retrenchment exercise which was meant to cut costs.
“Shareholders are hereby advised that the resultant obligation of the above mentioned adverse judgement may have a material impact on the profitability of the Group for the second half of the 2022 financial year,” said Turnall.
“Therefore, shareholders are advised to exercise caution when dealing in the shares of Turnall Holdings Limited.
“A full disclosure of the implications of this judgement on the financial statements will be made when we publish the audited 2022 financial year-end results.
Turnall said the board was considering options to mitigate “the resultant obligation.”
Mr Musodza told The Herald Finance & Business that he was aware of the notice to shareholders recently issued by Turnall (my former employer), whose subject was an adverse judgment against the company by the Supreme Court.
“I have a reasonable belief that the issued notice relates to a judgment made at the Supreme Court on the same day in a labour matter between myself and Turnall,” said Mr Musodza.
“The Supreme Court decision was in my favour, and it was basically a confirmation of the position of the contract between myself and Turnall Holdings Limited. It is this contractual obligation that Turnall Holdings Limited has been trying to avoid all along, resulting in the need for me to pursue a legal remedy to settle the matter. And the Supreme Court has decided the matter to finality.”
Mr Musodza said Turnall has not paid anything towards compliance with the Supreme Court order and was pursuing the legal processes towards enforcement of the order.
“No one is above the law,” he said.
“It would be sad indeed, and certainly disruptive to its operations if Turnall Holdings Limited has to be forced or coerced to comply with the Supreme Court order, voluntary compliance is always the best.”
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