There were a number of municipalities that were shamed by the FSCA and were listed. Picture: Freepik
The Financial Sector Conduct Authority (FSCA) has had enough and has published a comprehensive list of all the companies that have failed to pay their contributions to their employees’s pension and provident funds.
The FSCA said that thousands of employers have defaulted on their mandatory pension fund contributions, totalling R5.2 billion.
The FSCA disclosed 7,770 employers have failed to pay their contributions but did not disclose all names.
The authority broke down the list in the following manner and their reasoning for why these companies were named.
The balance of the 5,440 employers have not been included in the naming and shaming list as they do not meet the thresholds set out above.
The FSCA said that the process of withdrawing from the Two- Pot System played a significant role in brining this issue to the attention of the authority.
“The failure of employers to pay retirement fund contributions has severe consequences for members, affecting their withdrawal benefits, as we have seen with the introduction of the Two- Pot System,” the FSCA said.
“Withholding these contributions despite deducting the contributions from employees' salaries, is a serious offence that could amount to theft and, in some cases, fraud.”
There were a number of municipalities that were shamed by the FSCA and were listed.
Here are a few of the municipalities:
IOL BUSINESS