Compensation Fund owed K 16 8 million
Ndola, July 3, 2013, ZANIS – WORKERS Compensation Fund Control Board (WCFB ) Public Relations Manager Maybin Nkolomba says his Fund is owned K 168 million in debt.
Mr. Nkolomba says this is because of the fact that out of the over 30 000 registered companies in Zambia, only 18 830 these companies’ employees were registered with the Board.
ZANIS reports that Mr. Nkolomba said this in an interview at the just ended Zambia International Trade Fair in Ndola.
Mr. Nkolomba has since warned companies not registering with the Fund of prosecution adding that companies especially SMS, are giving the Board a problem by not remitting workers payments (contributions) to the company.
“Every employer other than the state is required to comply with the Workers Compensation Act by registering with us within 14days of commencement of business, submit statements of worker’s earnings, pay assessments and report accidents and diseases to us within three days.
But that is not what is happening, rather companies have been evading us and the only option is to prosecute companies that do not register with us,” Mr. Nkolomba warned.
He said currently Worker’s Compensation is persecuting companies that are defaulting and whose debts have increased.
Mr. Nkolomba explained that currently Worker’s Compensation has 17 000 registered companies on their list but records show that Zambia has over 30 000 registered businesses.
He said Workers Compensation has partnered with National Construction Council of Zambia (NCCZ), Zambia Development Agency (ZDA) and Patents and Companies Registration Agency ( PACRA ), respectively.
He explained that this networking was for the purpose of capturing unregistered companies which was in line with this year’s ZITF theme “Value Addition through Global Partnerships.”
He said the reason for partnering with ZDA was for the purpose of capturing foreign companies that come in the country and with PACRA to know the number of companies that have been registered.
Mr. Nkolomba however noted that despite the company facing challenges of companies defaulting, and not remitting worker’s income to Worker’s Compensation the Fund size in April and May grow up to six percent.
“We are doing well and in April and May the fund size grew from K549.7 million to K583.4 million. And the reason was because we received returns on investments and a lot of inflows from assessment income,” Mr. Nkolomba said.
Workers Compensation Fund Control Board is a social security institution established under Act number 10 of 1999 of the laws of Zambia.
It aims at providing compensation to workers for disabilities suffered or disease contracted during the course of employment.
It also looks at payment of compensation to dependents of workers who die as a result of occupational accidents and payments of contributions by all employers, other than state by way of annual assessments that a lot of companies are defaulting the payment of compensation to the Fund.