By Lehlohonolo Lehana.
The Financial Sector Conduct Authority (FSCA) has confirmed that the African National Congress (ANC) owes R86 million in provident fund contributions.
In a statement released on Wednesday, the FSCA says the party has not met its obligations in making regular retirement fund contributions.
This comes as ANC staff members have not been paid their July salaries and no assurance that they would receive their August salaries.
The party has been struggling with financial 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 tax debts.
The authority says an agreement has been reached with the ANC fund administrators to pay R10 million per month into the fund until it is up to date.
In the meantime, the ANC may not deduct any further provident fund payments from staff salaries.
“The party has to provide monthly confirmation to the FSCA that the employer is not making further deductions from employees’ salaries, if paid, in line with the amended fund rules; 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, and provide monthly updates to members of the Fund on the status of the arrear contributions,” says the FSCA.
FSCA commissioner Unathi Kamlana said that the onus on ensuring that there are no arrear contributions rested with 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,” he said.