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News24 reports that for the first time since the introduction of the two-pot retirement savings system a year ago, which exposed companies’, government departments’, and municipalities’ failure to pay employees’ pension fund contributions to administrators and third parties, the Pension Funds Adjudicator (PFA) is finally intervening.
It has been asked to adjudicate on a matter between Mafoko Security Patrols – one of the largest, 100% black-owned security companies in SA – and the Private Security Sector Provident Fund (PSSPF). According to Mafoko director Lebo Nare, the company has calculated that, with interest, it owes R15 million to the PSSPF. He has attributed the situation the company finds itself in to the following: the government’s late payments to security companies that guard state property; no regulated pricing on tenders, which often short-changed the service providers; and state-owned entities, such as SAA and Post Office, experiencing financial issues and abandoning debt. Nare said Mafoko had invoices to the extent of about R40 million which the government had left unpaid for more than 120 days. He also claimed: “We have settled the matters, but what happens is that PSSPF doesn’t update the list of settled payments.”
Nare alleged that the industry was suffering under the weight of widely reported maladministration and management at the PSSPF. He reported that a request had been made through the PSSPF so that the matter could be adjudicated by the PFA. The items expected to be discussed with the PFA include a compromise on the late payments, and repaying the actual debt. The PFA had not responded at the time of writing, but, according to Nare, the adjudication hearing is expected to be held soon.
- Read the full original of the report in the above regard by Soyiso Maliti at News24 (subscription / trial registration required)
Get other news reports at the SA LabourNews home page