HakiPensheni

Ministries major defaulters on pension contributions – POAC

By Florian Kaijage

7th April 2011

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The parliamentary Public Organisations Accounts Committee (POAC) said yesterday that government ministries were among major defaulters of pension contributions.

It said in a latest report table in Parliament that the government, through different ministries, owed the Parastatal Sector Pensions Fund (PSPF) more than 1bn/- in un-submitted employees’ contributions.

POAC chairman Kabwe Zitto tabled the report, which covers 2008/2009 financial year. According to him, the Ministry of Health and Social Welfare tops the list due to failure to submit 413, 560, 330/-, followed by the Ministry of Education and Vocational Training 386, 841, 586/-.

Other major defaulting public offices and ministries are; Livestock Development and Fisheries (113,050, 717/-), Agriculture and Food Security (69, 361,728/-), Judiciary (53, 230, 902/-) and Natural Resources and Tourism (46,122, 502/-).

Zitto said it was unacceptable to deduct workers money and yet fail to submit the contributions to the Fund.

“Worse enough, the ministries involved are those with a big number of employees who on retirement fail to collect their benefits in time,” he said.

Meanwhile, POAC advised the government to bail out public firms facing critical capital problems.

According to Zitto, firms in crucial need of capital include Tanzania Telecommunication Company, which needs 169bn/-, Air Tanzania Company Limited (18.2bn/-), Tanzania Electric Supply Company (2.8bn/-) and National Development Company (4.8bn/-).

He also noted that his Committee was concerned with appointing members of parliament in public institution boards, which is contrary to the advice given by the office of the Controller and Auditor General (CAG).

SOURCE: THE GUARDIAN