SAY WHAT? Here’s what the ANC owe in overdue provident fund

The leading party ANC is in serious arrears when it comes to their staff provident fund contributions. The party will however have to fork out a whopping R10 million to catch up with the arrears.

ANC OWES MORE THAN R80 MILLION IN PROVIDENT FUND

The party has been embattled in salary issues where members have previously protested for not receiving their pay.

In addition, ANC staff have claimed that the party has failed to contribute to their provident fund as well as to the South African Revenue Service (SARS) for their monthly income tax contributions.

The Financial Sector Conduct Authority (FSCA) announced the backlog in provident fund payments by the ANC party.

This is required by the Financial Sector Regulation Act to inform the public of regulatory action or intervention it takes relating to regulated entities.

Given the various media coverage, queries and public nature of the ANC’s staff provident fund, FSCA says the party is in accumulated arrears of R86 million.

“The African National Congress (ANC), which is a participating employer in the [staff provident] Fund, has not met its obligations in terms of making regular retirement fund contributions into the Fund.”

Financial Sector Conduct Authority (FSCA)

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ANC TO PAY R10 MILLION TO CLOSE THE ARREARS

The FSCA has been in regular engagements with the ANC’s staff provident fund. This is done with any other fund on its obligations to members.

These engagements have been led to the publishing of the Enforceable Undertaking, the FSCA says.

According to this, the ANC is required to pay R10 million every month into the provident fund until the arrear contributions are extinguished.

The ANC must further provide monthly confirmation to the FSCA that it is not making further deductions from employees’ salaries if paid in line with the amended provident fund rules.

“[ANC should] report monthly to the FSCA on the status of the arrear contributions and the employer’s adherence to its obligations as per the agreement with the Fund,” the FSCA said.  

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The ANC is further ordered to provide monthly updates to the members of the provident fund on the status of the arrear contribution.

FSCA commissioner Unathi Kamlana says it is the responsibility of ANC to treat their workers fairly by adhering to their obligations.

“The onus on ensuring that there are no arrear contributions, and to consider appropriate action if there are such arrears, remains on the trustees of a fund. Both employers and funds are reminded of the importance of treating their workers and members fairly by honouring their obligations as enshrined in various legislation,” said Kamlana.