The African National Congress's (ANC) financial woes worsened as the Financial Services Conduct Authority (FSCA) has ordered that it pay R10 million a month to recover R86 million in arrears on Provident Fund contributions it has not paid for its 535 members.
Apprehensive workers, still owed salaries for June, have said they are worried about being paid in August after they used the organisation's Policy Conference as a bargaining chip to get paid for July.
In “an update African National Congress Staff Provident Fund and Regulatory Intervention", the FSCA said it is in the public interest, to inform the public of regulatory action or intervention it has taken in relation to regulated entities.”
"The Fund is a defined contribution fund with approximately 535 members. The African National Congress, which is a participating employer in the Fund, has not met its obligations in terms of making regular retirement fund contributions into the Fund. This has resulted in an accumulation of arrear contributions in the Fund of approximately R86 million," the FSCA said.
It said this is after engagement with the ANC culminated in a published Enforceable Undertaking (EU) being concluded which requires the FSCA to enforce an agreement reached to pay a sum of R10 million every monthinto the Fund until the arrear contributions are extinguished.
The ANC is expected to provide monthly confirmation to the FSCA that the employer is not making further deductions from employees’ salaries, if paid, in line with the amended Fund rules.
It is to report monthly to the FSCA on the status of the arrear contributions and the employer’s adherence to its obligations as per the agreement with the Fund; and
“The onus on ensuring that there are no arrear contributions, and to consider appropriate action if there are such arrears, remains on the trustees of a fund. Both employers and funds are reminded of the importance of treating their workers and members fairly by honouring their obligations as enshrined in various legislation," FSCA Commissioner Unathi Kamlana said.
The ANC is to also provide monthly updates to members of the Fund on the status of the arrears contributions.
"An EU, in certain circumstances, can be an effective regulatory tool of intervention to facilitate remedial action against the regulated entity,' the FSCA said.
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