Firm cleaning up legacy issues: CEO

The National Business

By CLARISSA MOI
THE Comrade Trustee Services Ltd is cleaning up legacy issues affecting the fund, one of which includes settling of unfunded State liabilities, chief executive officer Charlie Gilichibi says.
Gilichibi said CTSL had K40 million crystalised under unfunded state liabilities and hoped it would go up to K80 million by end of this year.
While congratulating the Government for its arrangement on the K1.2 billion IMF (International Monetary Fund) loan, he said they (government) needed to consider disbursing some of those funds to the Defence Force Retirement Benefit Fund (DFRBF).
“That money comes with already pre-determined ways for it to be spent and one of those, which we believe, is to settle State debts,” he said.
“So that’s a very good thing happening for the State and what we believe is for Comrade Trustee Services Ltd as well on behalf of our members.
“We’d like to invite the government to have some serious considerations as a matter of priority when disbursing those funds from the K1.26 billion for our members’ benefit.
“We’d like at least K40 million to be forthcoming to the DFRBF.
“And on top of that, if it can be looked, for another K40 million to be added that on top because by the end of this year we are looking at a total of K80 million.”
Meanwhile, CTSL statutory manager Sitiveni Weleilakeba said there were three pieces to unfunded State liabilities:

  • A component of 60 per cent paid by CTSL to defined benefit members and get reimbursed by end of every year;
  • Crystalised at the end of every year when members reach the age of 55 where the state then pays CTSL a 60 per cent retirement funds; and,
  • Consolidated amount.

“As at the end of April (2020), the consolidated amount owed by the Government to us is K293 million,” he said.
“If we leave this fund the way it is, by the end of the 20th year, this thing will go up to K1.7 billion.
“So we are in a position now to basically negotiate this, otherwise this liability will grow in 10 or 15 years and will be very hard to resolve.
“We are now addressing that issue. Otherwise it will be hard for the people that we hand over the fund to when we leave this organistaion.”
Weleilakeba said they hoped to achieve this in the next two years.