By FRANK ASAELI
THE Government currently owes an estimated K1.6 billion to the Nambawan Super Ltd in superannuation benefits for its employees.
Nambawan Super chairman Sir Nagora Bogan disclosed this in reaction to the Government’s payment of K250 million to partially settle its superannuation liability this week.
The money was allocated from the 2007 Supplementary Budget with a further K150 million allocated from the 2008 National Budget which will be handed over next year.
It was the first time that the Government acted to reduce its superannuation liabilities.
Finance and Treasury Minister Patrick Pruaitch said the Government was committed to and would continue to reduce its superannuation liabilities in future when circumstances allow.
Sir Nagora said currently the State carries an estimated unfunded superannuation liability of K1.6 billion and with the K250 million settlement, the States liability was reduced to K1.35 billion.
This would be further reduced when the next payment was done sometime in 2008.
“So far, Nambawan Super has been paying out exiting or retiring members from its own funds and invoicing the Government for reimbursement,” he stated.