A lawyer representing dismissed national staff of UAP Old Mutual South Sudan said Monday they have petitioned the High Court to block the company from ceasing operations, alleging the move is an attempt to evade potential legal liabilities.
The Board of Directors of Old Mutual, a financial services conglomerate that maintains its headquarters in Kenya, announced in June the planned run-off of the insurance operations of UAP Insurance South Sudan Limited (UAPISS) after nearly 19 years in the country.
“The Board of Directors of the Company hereby notifies its shareholders and the general public that its subsidiary, UAPISS, a company incorporated and duly licensed to undertake insurance business in South Sudan, will stop writing new business and policy renewals with effect from 3 July 2025,” the notice read.
The decision, according to Old Mutual, follows a strategic review of the business and its operating environment.
The decision to shut down operations in South Sudan also follows a protracted labor dispute that began in September 2023, when 57 national employees staged a strike over what they called an unfair work environment, including unequal pay compared to foreign staff.
The company later dismissed leaders of the national staff association, prompting a lawsuit that remains unresolved.
Advocate Marko Reech Chan, counsel for the dismissed workers, told Radio Tamazuj that the case was initially set for final judgment in July but was delayed due to the presiding judge’s transfer—a move he suggested could complicate the workers’ pursuit of justice.
“We have already submitted a request for a temporary injunction, which was expected to be issued by August 7, to prevent UAP from winding down operations pending the court’s final decision,” Reech said. He cited Sections 166 and 167 of the Civil Procedures Act, which authorize courts to restrain parties from taking actions that could jeopardize ongoing legal proceedings.
Reech accused UAP of misleading the public and the court about its timeline for closure. “UAP claims it will cease operations over two years, but internal documents indicate they plan to shut down within 90 days,” he alleged. “They are trying to avoid liabilities that may arise from this case.”
Mading Jacob, former chairman of the UAP staff association and one of the dismissed employees, expressed cautious optimism. “South Sudanese courts have the authority to prevent UAP from leaving while legal matters are unresolved,” he said. “We trust the judiciary will deliver justice.”
UAP Old Mutual could not immediately be reached for comment.