The Financial Sector Conduct Authority (FSCA) has imposed strict measures on the ANC after it failed to make pension fund contributions on money taken from employee salaries.
It comes after ANC employees have expressed concerns after the party failed to pay salaries or make provident fund contributions for the last three years.
The ANC has also not paid over employee tax, UIF or the skills development levy despite taking this money from staff.
The ruling party reportedly owes the South African Revenue Service (SARS) over R102 million in unpaid taxes.
The FSCA said it had concluded an Enforceable Undertaking (EU) with the ANC Staff Provident Fund on how it is to meet its obligations to its members.
As part of an enforceable undertaking, which gives the FSCA broad remedial powers, the ANC must:
- Pay R10 million every month into the fund until the arrear contributions are extinguished.
- Provide monthly confirmation to the FSCA that it is not making further deductions from employees’ salaries.
- Report monthly to the FSCA on the status of the arrear contributions.
- Provide monthly updates to members of the fund on the status of the arrear contributions.
FSCA Commissioner Unathi Kamlana highlighted that the onus of ensuring that there are no arrear contributions, and to consider appropriate action if there are such arrears, remains on the trustees of a fund.