FSCA warns ANC of consequences over provident fund contributions
The Financial Sector Conduct Authority (FSCA)’s commissioner Unathi Kamlana said that it may be forced to take more regulatory action against the African National Congress (ANC) should it fail to pay provident fund contributions for its staff members.
South Africa’s financial watchdog has instructed the governing party to pay R10 million every month to clear its R86 million debt in provident fund contributions for its employees.
More than 500 staff have been diddled out of their pension fund savings after it emerged that the governing party had failed to pay regular retirement contributions, adding to the desperation of workers who have been struggling to make ends meet after not being paid for months.
The ANC, which often fails to pay salaries, owes R 86 million in provident fund contributions for about 535 members.
The Financial Sector Conduct Authorities said it had reached an agreement with the seemingly cash-strapped party to make monthly contributions to the fund.
Commissioner Unathi Kamlana said that failure to stick to this commitment would have consequences.
“Then we will be forced to consider other regularity actions given the curatorship, liquidation, and so on. We are not there right now and this is a step that is legally binding that we can use to enforce what we see as requirements to be complied with,” Kamlana said.
The party has been struggling with cash-flow challenges over the past years, with workers having to strike every month before their salaries are paid.
It also owes the South African Revenue Service more than R102 million in taxes.
-EWN
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