UAP Old Mutual’s planned exit from the South Sudan’s insurance market is facing legal resistance from former employees, who claim the company is attempting to flee the country with unresolved labour disputes and financial liabilities.
- •Advocate Marko Reech Chan, counsel for the dismissed workers, said they have petitioned the High Court for a temporary injunction to prevent the company from winding down operations while the case is still in court.
- •The dispute 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.
“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 accused the company of concealing its true closure timeline. “UAP claims it will cease operations over two years, but internal documents indicate they plan to shut down within 90 days,” Reech alleged. “They are trying to avoid liabilities that may arise from this case.”
The case was initially set for final judgement in July but was delayed after the presiding judge was transferred, a development Reech suggested could complicate the employees’ pursuit of justice.
Announcing the planned exit in June, Old Mutual said: “The Board of Directors of the Company hereby notifies its shareholders and the general public that its subsidiary, UAPISS will stop writing new business and policy renewals with effect from 3 July 2025.” The company said the decision followed “a strategic review of the business and its operating environment.”
Former staff association chair Mading Jacob said: “South Sudanese courts have the authority to prevent UAP from leaving while legal matters are unresolved. We trust the judiciary will deliver justice.”
If granted, the injunction could keep the multinational’s South Sudan operations running until the labour dispute is resolved, setting a potential precedent for corporate exits in fragile markets.
