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Business News of Tuesday, 16 August 2005

Source: GNA

SSNIT's pressure on defaulting companies begins to bite

Akatsi, Aug 16, GNA - As the pressures by the Social Security and National Insurance Trust (SSNIT) on companies defaulting in paying workers' social security deductions have begun biting, the Akatsi District Assembly's Executive Committee has issued an emergency fiat, urging the assembly to settle its indebtedness immediately to the Trust from any available funds.

Of the about 292 companies and entities under Akatsi, Keta, Ketu, North and South Tongu districts, more than half owe the Trust about 700 million cedis in unpaid social security contributions. Dozens of them, whose cases are in the extreme, have since been dragged to court.

The Dzodze District Court, presided over by Mr. Justice Nelson Agbevor, on July 19, granted an application filed by the Denu branch of SSNIT, seeking an order to seize the Akatsi District Assembly's property to defray the debt.

Subsequently, officials of the court on August 3 impounded a double cabin pickup truck belonging to the assembly for auctioning, heightening tension between the Trust and the Assembly over the Trust's figures. The recent suit was filed after the assembly defaulted in paying 74 million cedis it owed the Trust between 2001-03.

The court ruled in favour of SSNIT and imposed an additional two million cedis cost on the assembly since December 2003, increasing the figure to 76 million.

Mr Anthony Abledu, the District Chief Executive (DCE), expressed concern at the turn of events and said the amount would be paid.