The Local Authority Superannuation Fund (LASF) has disclosed that it is owed K 158 million in unremitted pension contributions by councils countrywide.
And Government says it will take legal action against local authorities that will fail to remit employees’ contributions to the fund.
Local Government and Housing Permanent Secretary, Amos Malupenga said local authorities should honor their responsibility by paying back the dues to LASF.
Mr. Malupenga noted that Government is aware of the challenges faced by councils but should prioritize paying LASF.
He said if councils that have outstanding bills fail to pay to LASF, the ministry of local government will use its authority and engage the ministry of finance to deduct from the equalization fund allocation.
ZANIS reports that the Permanent Secretary was speaking during the Local Authorities Superannuation Fund consultative meeting with Copperbelt councils on the options available for local authorities to liquidate their indebtedness on pension contributions at Mukuba hotel in Ndola today.
And the local Authorities Superannuation Fund (LASF) says it has noted with great concern the alarming rate of unremitted pension’s contribution of councils in the country.
Local Authorities Superannuation Fund Acting Managing Director, George Chileshe says in the last four years the debt on remitted pension contributions by councils in the country increased by 60 percent from K99 million in 2014 to K158 million as at February 28, 2018.
Mr. Chileshe said the figures have reached an alarming level which he said if not quickly addressed the figures might be difficult to manage.
He said for every pensions scheme to be successful, there must be compliance to the four pillars of the pensions model which are member registration, contributions and compliance, investments and benefits.
Mr. Chileshe stated that from the four pillars the board has noted that there is a complete collapse of remittance of pension contribution by councils to LASF.
Mr. Chileshe has since urged all councils to adhere to the terms of the negotiated payment plans and also to consider other options such as land/property debt swaps transactions as a stop gap measure to restructure the pension contribution arrears.
This is public debt which you don’t see in the figures. And this debt relates to old-established councils but Sata was still allowed to create so-called new districts and people applauded him. Where are we now? This will not go away no matter how much Godfrida Sumaili prays.