NSSF: Employers still holding Sh5.6 billion - Beaking Kenya News

Beaking Kenya News

Where It All Happens

Breaking Kenya News


Friday, 4 October 2019

NSSF: Employers still holding Sh5.6 billion

The National Social Security Fund (NSSF) has rejected claims that it cannot account for up to Sh5.6 billion of workers’ monthly contributions.

In a statement to the Nation, acting managing trustee Anthony Omerikwa said the money is not lost but it is being held by various employers who have yet to submit the same to the fund as required by the law.

Out of the Sh5.6 billion, Dr Omerikwa said Sh919.2 million is being held by government agencies and county governments. The fund has sought the help of the Head of Public Service and the National Treasury to recover the money, he added.

In its audit report for the 2017/18 financial year, the Office of the Auditor-General flagged the unremitted members’ contributions totalling Sh1.7 billion, which have yielded penalties amounting to Sh4.5 billion.

The auditor casts doubt on the recoverability of the funds accumulated over the years.

Dr Omerikwa said they are doing everything possible to recover the funds, including possible prosecution of all those who have violated the law for the late remittance of the contributions.

“We have engaged the Intergovernmental Relations Technical Committee (IGRTC) to recover outstanding dues owed by defunct local authorities,” he said. IGRTC is tasked with verification and validation of assets and liabilities of defunct local authorities.

“We are also following up through official demand letters and notices of intended prosecution and we have commissioned the upgrade of our system to produce enhanced debt management reports,” the trustee said.

As of June 30, 2018, outstanding members’ contributions stood at Sh1.7 billion and Sh391,220,493 had been recovered as of March 31, 2019.

Some Sh845,873,475 from employers with arrears is being pursued through formal demand notices and Alternative Dispute Resolutions (ADRs).

An additional amount totalling Sh304,729,959 is being recovered through instalment undertakings.

About Sh361,952,719 is being pursued through the courts, while Sh241,679,597, with respect to defunct local authorities, has been referred to IGRTC and the Council of Governors for resolution.

Dr Omerikwa said Sh10,276,387 is uncollectible due to Employers under receivership and who have closed.

No comments: