Prosecution of Defaulting Employers Starts

23 May 2011

The Workers’ Compensation Fund Control Board (WCFCB) has commenced prosecuting all defaulting employers countrywide.

And a Mbala-based employer Pathias Mung’andu, a principal representative of Grasshopers has been jailed three months by Mbala subordinate Court Magistrate Stanley Sinyangwe for failure to pay WCFCB assessment amounting to K21, 574,658.65.

WCFCB public relations manager Maybin Nkholomba disclosed in an interview at the weekend that his institution had began persuing employers failing to remit funds to the institution which was established by an Act of Parliament for the purposes of compensating workers disabled or killed by occupational accidents and diseases.

He said to this effect, the WCFCB has trained 20 prosecutors countrywide to pursue all defaulting employers.

“We have trained our own prosecutors and they are all on the ground pursuing every little detail involving defaulters,” said Mr Nkholomba.

He said the institution had a responsibility to care more than 22,000 active pensions, saying it was time some employers met their obligations of remitting funds to the institution as stipulated by law.

“If employers do not remit the funds, it affects our revenue as well. We have a duty to compensate employees injured in the course of duty,” he said.

He said currently, the institution was receiving a record of 1,200 accidents every year, which is why it was necessary for employers to meet their obligations.

Mr Nkholomba said WCFCB had 11,306 members but that more than 4,000 of the 11,306 members had been defaulting.

“We are appealing to all the employers to meet their obligation failure to do so will make them face the law,” he said.

He said his institution was mandated by the laws of Zambia Act No 10, of 1999 to collect revenue on behalf of employees.

And facts before the Mbala Subordinate Court were that Grasshoppers being an employer registered with the WCFCB in Mbala failed to pay assessments in the sum K19, 613, 326.05 plus 10 per cent penalty on dates unknown between May 2010 and January 2011 contrary to the requirements of the Workers Compensation Act 10 of 1999 of the Laws of Zambia.

The assessments were raised by Workers’ Compensation Fund Board in respect of social security cover against employment injury and disease for 18 employees engaged by Grasshoppers for 2011- 2012 financial year.

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