AFRICAN DEVELOPMENT BANK SANCTIONED FOR BREACH OF CONTRACT

THE Administrative Tribunal, an independent judicial arm of the African Development Bank (AfDB), has ordered the Bank to pay full compensation to a former employee for wrongful termination of contract. The employee, simply identified as S.A., a former Vice President in charge of infrastructure, private sector and regional integration, was relieved of his appointment by President Akinwumi Adesina, as part of his desire to put together a senior management team, after his emergence as president.

Although the former Vice President conceded to a mutual termination of his employment, he, however, contested the terms of his disengagement. The Bank offered him payment of six months’ salary in lieu of notice, and additional allowance of 16 months’ salary and benefits among other entitlements. However, the employee was not satisfied as he claimed the severance package fell short of his contractual entitlements. He insisted on being paid 22 months’ salary as stipulated in his employment contract. Moreso, he claims that his termination was not approved by the board of the Bank, contrary to standard procedure and general practice of the bank, as it pertains to his position.

 

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In reliefs sought, the employee, through his counsel asked the Tribunal to declare as null and void, and unacceptable, the separation terms and package offered to him by the Bank. He submitted that for there to be an agreed separation, the terms of separation must be acceptable to both parties, and not unilaterally imposed by the Bank. Therefore, the Bank should be mandated to adhere strictly to its practice of paying employees in full the remaining parts of their contract. Responding, the Bank asked the Tribunal to dismiss the applicant’s claims for lack of merit.

In its judgment, the Tribunal headed by Justice Salihu Alpha Modibo Belgore, ruled in favour of the applicant, declaring his termination of contract as unlawful. The Tribunal ordered the Bank to pay him an equivalent of 22 months’ salary and benefits, together with interests. He was also awarded the equivalent of three months’ salary for moral damages. In addition, the cost of six months’ rent was to be paid by the bank to the applicant and £40,000 as legal costs.

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The scathing judgment reads in part: “the Tribunal acknowledges that the President of the Bank (Akinwumi Adesina) needs to have confidence in his senior advisors and it is not for Tribunal to second guess the wisdom of his decision to terminate the appointment of the applicant…. That said, having elected to terminate the applicant’s employment early, the President was required to do so in a humane manner in conformity with the rules governing the employees of the Bank”.

Similarly, the Tribunal also frowned at the punishment meted to another employee, a Canadian national simply identified as S.M., who was engaged by the Bank as Chief Evaluation Officer in 2013. Although his appointment was confirmed in October 2014, it was subsequently cancelled for no justifiable reason. To worsen matters, his performance was poorly rated and he was shortly dismissed by the Bank for alleged unsatisfactory service. Not satisfied, the appellant contested his inappropriate evaluation and humiliation.

In its ruling, the Tribunal ordered the Bank to pay 12 months’ salary as damages to the Canadian for failure to abide by its evaluation Rules, 12 months’ salary as damages for mental stress and suffering and £10,000 for legal costs. According to a former Director with the AfDB “these two cases are a sample of the humiliation several staff have suffered in recent times.”

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.