ANC ordered to fork out R10m monthly to settle R86m in provident fund arrears

The Financial Sector Conduct Authority (FSCA) has instructed the ANC to pay R10m a month to its staff provident fund, which is about R86m in arrears.

The regulator said on Wednesday it had “intervened” on behalf of 535 contributors to the fund.

“The ANC, which is a participating employer in the fund, has not met its obligations in terms of making regular retirement fund contributions into the fund.”

The authority said this had resulted in an accumulation of about R86m in arrear contributions.

“The FSCA has been regularly engaging with the fund, as it does with any fund, on its obligations to members. These engagements have culminated in a published enforceable undertaking (EU) being concluded with the fund and which requires the fund to, inter alia, enforce an agreement reached with the employer to pay a sum of R10m every month into the fund until the arrear contributions are extinguished.”

Three weeks ago TimesLIVE reported that ANC staff members, who were struggling to make ends meet after not being paid for months, had embarked on a go-slow and threatened to interdict the party’s recent national policy conference at Nasrec. 

The Luthuli House workers said they were struggling to provide for their families and, to do so, some had dipped into their personal investments.

Some have lost their policies, while others have died waiting for management to tackle their issues, particularly the provident fund, a benefit that must be paid to their families. 

Regarding the R10m monthly payments, the ANC must provide monthly confirmation to the FSCA that it is not making further deductions to employees’ salaries, in line with amended fund rules.

Furthermore, the party is to “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”.

It said the enforceable undertaking, in certain circumstances, can be an effective regulatory tool of intervention to facilitate remedial action against the regulated entity.

FSCA commissioner Unathi Kamlana said: “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.”

TimesLIVE