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FSCA orders ANC to make monthly payments of R10m to staff provident fund to clear R86m contribution arrears

Details

ancBL Premium reports that the Financial Sector Conduct Authority (FSCA) has ordered the ANC staff provident fund to compel SA’s ruling party to settle about R86m in accumulated contribution arrears that it owes members of the fund.

The authority signed an enforceable undertaking with the provident fund this month, requiring it to ensure that the ruling party pays R10m into the fund each month until its accumulated contribution arrears have been paid in full. The ANC staff provident fund is a defined contribution fund with about 535 members. “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,” the FSCA said in a statement on Wednesday. The provident fund must also ensure that the ANC pays outstanding insured death benefits that weren’t honoured by an unidentified insurer due to outstanding premium payments that weren’t made by the party. The fund is moreover required to provide monthly confirmation to the FSCA that the ANC is not making further deductions from employees’ salaries, if paid, as per amended fund rules. The enforceable undertaking further requires the provident fund to provide monthly updates to fund members on the status of the party’s contribution arrears. The fund must also report monthly to the FSCA on the status of the ANC’s contributions arrears and whether it is adhering to its obligations in line with its agreement with the fund. “We are aware of the FSCA’s action and the matter is being handled by the treasurer general [Paul Mashatile],” ANC spokesperson Pule Mabe said.

  • Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only)
  • Read too, Financial watchdog says ANC must pay R10m a month to clear staff retirement fund arrears, at Fin24


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