Business News of Friday, 7 September 2012

Source: Daily Guide

SSNIT Chases Debtors

A bench warrant has been issued for the arrest of 11 directors and proprietors of some establishments in the Brong Ahafo region for failing to pay their workers’ social security contributions to the Social Security & National Insurance Trust (SSNIT).

Some of the proprietors were said to have refused to register their establishments and workers with SSNIT as required by the law.

The establishments include Divine Lodge at Kenyasi; Rabuni Preparatory School, Sunyani; Akosa Palace Hotel; Modern International School, Wenchi; Samdoe 2002 Limited; Super Nick Co. Limited; Tasly Ghana Limited; Prikubis Enterprise, Sunyani and Coba Sawmill Complex Limited, Norbekaw.

At a media briefing on Monday in Sunyani to highlight the level of indebtedness of the firms, Adwoa Abebresse, Sunyani Area Manager of SSNIT, said a total of 57 employers were presently facing court actions for failing to pay their employees social security contributions to the Trust.

She stated that SSNIT was expected to retrieve a total amount of GH¢188,705.15 as a result of the said court cases.

Mrs. Abebresse disclosed that the overall indebtedness of entities to SSNIT in the region had reached an all-time high of GH¢1,417,836.47.

The total debts, she stated, comprise actual contribution of GH¢1,020,945.31 and GH¢396,891.16 being penalty slapped on the defaulters.

According to the area manager, employers are mandated by the new pension law, the National Pensions Law Act 2008 (Act 766) to register their establishments and workers with SSNIT and pay their social security contributions by 14th of every month.

She said 3% penalty is charged on the returns if employers pay workers contributions three days after the required date, stating that SSNIT demands the data of contributors from their employers at the end of every month.

She observed that every member of the scheme is supposed to have a valid and distinct social security number.

Explaining further, Mrs. Abebresse said the situation had led to delays in the processing of benefits of qualified contributors.

This, she noted, affects the ability of the Trust to promptly replace incomes of contributors.

She said the debts also denied the Trust of investible funds which are critically needed for the administration of the scheme, especially payments of pensions and other benefits.

She called on the general public, especially employers, to corporate with SSNIT.