THE Fiji National Provident Fund (FNPF) has revealed it was owed a total outstanding legacy contribution debt of $10.8 million since last year.
Of that, $4.8m (44.5 per cent) are owed by active employers while $5.99m (55.5 per cent) are due from inactive employers.
Since last year to date, the Fund has recovered $2.8m.
However, since the commencement of the amnesty period in May this year to date, it has collected $913,000, with the balance of $8m being aggressively pursued by the Fund.
FNPF general manager Member Services Alipate Waqairawai revealed these figures while providing an update on the amnesty period at a press conference in Suva yesterday.
And he has urged employers to take advantage of the amnesty period to resolve legacy debt and to work with the Fund’s officers to assist in making arrangements for settling those contribution debts.
He said those debts had accumulated over many years – some dating back to 1995, and included complex cases involving businesses that had ceased operations, been liquidated, or were subjected to winding-up proceedings.
At the commencement of the campaign, the Fund had identified 2446 employers with legacy contribution debt.
The amnesty period was intended to assist 35,200 affected Fund members in resolving the contributions owed to them.
Alluding to the $5.99m contribution debt owed by 1292 inactive employers, he said while those debts were largely considered unrecoverable in circumstances such as liquidation, winding-up or the death of a sole proprietor, the Fund continued to take appropriate recovery action wherever possible.
“Where contributions are owed, the objective is to recover those contributions and ensure they are properly credited to the members concerned,” Mr Waqairawai said.
“That is why the recovery of the underlying contribution debt remains the central focus of this campaign.
“We encourage employers with legacy contribution debt to use this opportunity to engage with the Fund and resolve their outstanding obligations within the campaign period.
“The penalty waiver provides an opportunity for eligible employers to address historical debt while the Fund continues to uphold its statutory responsibility to recover contributions.”
Mr Waqairawai said they had a range of recovery and enforcement measures in place, including: time payment arrangements to allow employers to clear debt through payment arrangements, orders to third parties where applicable, prosecution against employers, and ongoing monitoring, review and follow-up through appropriate recovery channels.
