State to pay another K40m to NSL

Business, Main Stories

THE State is expected to pay another K40 million outstanding of employer contributions to Nambawan Super Limited (NSL).
NSL managing director Leon Buskens said the State had paid K65 million which included penalty interest.
The K65 million represented what NSL had already paid on behalf of members that had left employment on behalf of the State.
He said NSL was thankful for the assistance of secretary of Treasury Simon Tosali and his team for their efforts in dealing with the issue of contribution arrears.
“The fundamental issue of under-budgetting on the part of the Government’s superannuation obligations will always give rise to the problem that is currently being faced, and I hope that this will not be the case from this year onwards,” Mr Buskens said.
He stressed that under the Superannuation General Provision Act 2000, employers must comply with their obligations to contribute for and on behalf of their employees and urged the State to ensure that these obligations were met.
Mr Buskens. in response to a story published by Post-Courier yesterday, said failure by an employer to remit staff super funds was guilty of an offence under the Superannuation Act and,  as stipulated, the employer was required to remit employer and employee contributions within 14 days of the date
of deduction.
He said NSL’s main objective was to ensure that the State, as the employer of all public servants in the country, must comply with its obligations under the Superannuation Act.
“Under the transition arrangement when the legislation was introduced, the State was liable to comply fully with the legislation to paying 100% employer contributions from Jan 1,” Mr Buskens said.
“The Act is also specific that an entity who fails to comply with section 78 is guilty of an offence and under section 79; it has the powers to recover interest on default and the penal rate of interest is 5% above the 28 day Treasury Bill rate over the period of late payment.”