UAP Urged to Compensate Ex-Employees Before Closure

By Awan Achiek

The Centre for Peace and Advocacy (CPA), a civil society organisation based in Juba, urged UAP Insurance South Sudan Ltd on Friday to compensate its former employees before fully shutting down its operations.

This appeal followed the announcement from a subsidiary of the Old Mutual Group, East Africa, stating that it would cease operations within the next 24 months due to financial difficulties.

The decision, approved by shareholders, was made after what the company termed “a strategic review,” which cited unsustainable market conditions and the need for substantial capital investment beyond the resources the company had planned.

Ter Manyang Gatwech, Executive Director of the Centre for Peace and Advocacy (CPA), emphasised the importance of UAP Insurance fulfilling its moral and legal obligation to compensate its former employees before the complete shutdown of its operations.

“While some reports suggest UAP closed due to internal frustrations, we believe the true issues at stake are financial and ethical responsibilities towards employees,” Manyang stated in a message shared with Dawn on Friday.

Manyang expressed concern that UAP, currently involved in a legal dispute with former employees since last year, might attempt to close operations without addressing these unresolved labour issues.

“Regardless of the reasons for shutting down, UAP must ensure its former employees are compensated for what they are owed.”

An outspoken activist urged the insurance firm to demonstrate integrity and fairness in resolving the debts owed to its former employees.

“CPA reaffirms its commitment to advocating for the rights of workers and calls on UAP’s leadership to maintain transparency and accountability as they navigate the organisation’s closure.”

In September 2023, the company faced significant controversy after unlawfully terminating 57 national staff members following a sit-in strike concerning unequal pay and unfair treatment compared to foreign expatriate colleagues.

The Ministry of Labour ordered UAP to reinstate the staff and revise its salary structure; however, the company’s non-compliance led to legal action by the UAP National Staff Association (UNSA).

In February 2023, the High Court issued an arrest order for Omwero for failing to appear in court, although he was later released.

The case, which remains unresolved, saw its final submission scheduled for July 4, 2025, coinciding with UAP’s announcement. The ongoing legal battle and financial strain have likely contributed to the decision to wind down operations.

UAP’s exit marks a significant shift in South Sudan’s insurance sector, raising concerns about the impact on policyholders and employees.

While the company has assured customers it will fulfil its obligations during the runoff period, the closure underscores the challenges of operating in South Sudan’s volatile economic and regulatory environment.