Eighteen statutory bodies in Malawi are hiding K5.7 billion meant for pension contribution.
According to a press release by the Registrar of Financial Institutions, the statutory bodies have not remitted pension contribution totaling K5.7 billion as of 31st October, 2018 despite deducting the money from their workers.
Agriculture Development and Marketing Corporation has the highest outstanding pension contribution with K1.3 billion.
The grain marketer is followed by LUANAR with an outstanding contribution of K958 million, Malawi Broadcasting Corporation (MBC) with K854 million, Blantyre Water Board (K717 million) and Northern Region Water Board (K535 million).
Other statutory bodies that have failed to remit pension contributions are Mzuzu City Assembly, NkhataBay District Assembly, Malawi Institute of Tourism, Mangochi Town Council, Blantyre City Assembly, Northern Region Water Board, Lilongwe City Assembly, Central Region Water Board, Mzuzu University, and Malawi Post Corporation.
In the statement, The Registrar of Financial Institutions Dalitso Kabambe has expressed concern over the non-remittance of the pension contribution saying it affects accumulation of retirement savings for pension members.
Kabambe has since given the statutory bodies until March 31, 2019 to pay up or face further action.
He has also warned that his office will publish names of private companies with outstanding pension contributions.
The Pension Act of 2011 requires employers to remit to a trustee of a pension fund both employer and employee’s pension contribution within fourteen days from the end of the month the contribution fall due.
Non-remittance of the pension contribution is an offence under the Pension Act.