Fedusa: Call to punish defaulting firms

FEDUSA (Federation of Union of SA) has called for stricter penalties for companies that fail to pay over pension and retirement funds timeously. The federation’s general secretary, Dennis George, said yesterday that penalties as high as 23 percent a year should be levied and criminal charges pursued where fraud and corruption were suspected in order to protect the rights and interests of members and employers. “The federation argues that it is unethical if members contributions are collected but not paid to the fund resulting in no death, disability and funeral cover for beneficiaries and members,” George said. “Furthermore, if an employee passes away or becomes permanently disabled, they basically lose the benefits.” It maintains that there should be serious consequences if an employer fails to pay contributions timeously and regularly. – Sechaba ka’Nkosi