The LADB, a parastatal bank, was liquidated in 1998 and the employees claim when the bank was liquidated they were promised terminal benefits by the government of Lesotho which was not fulfilled.
When the bank was liquidated, it had grown to have branches in all the districts of Lesotho and some mini towns and its closure left hundreds of employees jobless.
The employees of the bank had a pension fund in which they contributed 2 percent while the bank as the employer contributed 22 percent. When the bank was dissolved, the employees received 2 percent of their contributions from the pension fund but not the employer’s contribution of 22 percent.
The high court had found that the former employees could claim their entitlements from the pension fund and the employees argue the government must take responsibility as the owner of the employer – the dissolved bank.
The government disclaimed responsibility arguing the workers should have claimed their dues from the pension fund.
The former employees, led by former branch manager Likano Tšiu, claimed that the government had turned against the promise it made earlier that it would take responsibility and pay workers the remaining 22 percent of their pension.