South Africa: Standing Committee On Finance Concerned Over R1.79 Billion In Outstanding Municipal Pension Fund Contributions
The Standing Committee on Finance has expressed serious concern over approximately R1.79 billion in outstanding pension fund contributions owed by about 19 municipalities, with municipalities in the Free State and North West accounting for 79.4% of the total debt.
The committee expressed its unhappiness with the failure by municipalities to meet their statutory pension fund contribution obligations, raising concerns about accountability and the potential consequences for affected municipal employees and their retirement security.
Committee Chairperson Dr Joe Maswanganyi said the committee would pursue the matter with the Ministers of Finance and Cooperative Governance and Traditional Affairs, the affected municipalities and organised labour to establish what action was being taken to recover the outstanding contributions and ensure accountability.
“I will write to the Minister of Finance and the Minister of Cooperative Governance and Traditional Affairs to establish what measures are being taken to resolve the matter,” Dr Maswanganyi said.
He also proposed that the committee engage with trade unions in the municipal sector early next year to explore possible interventions.
Dr Maswanganyi said the committee would work with Parliament's Legal Services to write to all affected municipalities, setting out questions that they would be required to answer within specified timeframes.
“The responses would establish what corrective measures are being implemented to settle the outstanding contributions and what consequence-management steps are being taken against those responsible,” he said.
The committee stressed the urgent need to ensure accountability, saying that those found responsible must face the full might of the law.
Dr Maswanganyi proposed convening a meeting with all affected municipalities to hear directly from them about the outstanding debt and the steps being taken to settle it.
“The public elected us and has full confidence in us. We cannot let them down,” Dr Maswanganyi said.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
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