ANC owes R86m to staff provident fund – ordered to pay R10m per month
The FSCA also wants monthly reports about the status of the contributions made by the ANC.
A flag of the African National Congress (ANC). Picture: Michel Bega
The African National Congress (ANC) has failed to make regular retirement fund contributions for its staff, which has resulted in the provident fund being R86 million in arrears, according to the Financial Sector Conduct Authority (FSCA).
In a statement issued by the FSCA, the financial watchdog said it issued this information on the basis that it was in the interest of the as public, as per the FSCA Act, 2017.
FSCA revealed that the fund has around 535 members. It said after unsuccessfully trying to engage with the party it has since drafted guidelines to recover the amount missing from the fund.
It said it had reached an agreement with the fund for the ANC to pay R10 million per month “until the arrear contributions are extinguished”.
The FSCA has also suggested that the fund provides monthly reports about the status of the contributions by the ANC.
“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 FSCA Commissioner Unathi Kamlana said.
The ANC has been experiencing cash flow problems for months, with employees often complaining that they have not been paid their salaries on time.
The party previously blamed the Political Party Funding Act for its financial struggles, saying it no longer receives the donations it used to.