FNPF General Manager Debt Services Alipate Waqairawai says the Fund identified 2,446 employers with legacy contribution debt at the commencement of the campaign, with total outstanding legacy contribution debt standing at $10.8 million.
Waqairawai says of this, $4.8 million, or 44.5 percent, is owed by active employers, while $5.99 million, or 55.5 percent, is due from inactive employers.
He says the Fund has recovered $2.8 million from the legacy debt, including $913,000 recovered since the special amnesty campaign began on 15th May.
The amnesty was intended to assist 35,200 affected members in resolving contributions owed to them.
Waqairawai says the $913,000 recovered since the implementation of the amnesty reflects the programme’s positive impact in supporting members while strengthening the Fund’s recovery efforts.
He says that this leaves approximately $8 million outstanding from the original $10.8 million legacy debt.
INSERT: Waqairawai on debt recovery 3rd Sept
He says the legacy debt has accumulated over a number of years, with some debts dating back to 1995.
He says the Fund acknowledges that this debt has accumulated over many years and includes complex cases involving businesses that have ceased operations, been liquidated, or are subject to winding-up proceedings.
Waqairawai says the Fund has also uncovered additional historical liabilities through compliance audits, investigations and detailed payroll audits.
He says these audits have identified instances where contributions were not deducted or paid on allowances and other components of remuneration, directors’ fees, and individuals who meet the definition of an employee under the relevant legislation.
He says the Fund has an established debt recovery process, with measures including time payment arrangements, orders to third parties where applicable, prosecution against employers who fail to meet their statutory obligations, departure prohibition orders where the relevant requirements and guidelines are met, and ongoing monitoring and follow-up.
Waqairawai says of the $10.81 million outstanding, $4.81 million relates to active employers.
He says these employers remain subject to debt recovery action, with a number already making arrangements to clear their outstanding contribution debt and associated loss of interest in order to qualify for the full penalty waiver under the campaign.
He says a significant portion of the legacy debt relates to employers that are no longer operating, making recovery more difficult.
He says 1,292 employers have been identified as no longer operating.
He adds while these debts are largely considered unrecoverable in circumstances such as liquidation, winding-up or the death of a sole proprietor, the Fund continues to take appropriate recovery action wherever possible.
He says eligible employers may benefit from a waiver of penalties, subject to the approved terms and conditions.
Waqairawai says the Fund would prefer to resolve outstanding matters through an amicable and conciliatory approach rather than use its enforcement powers.
He is encouraging employers, businesses, church groups, school committees and sole proprietors to come forward and make arrangements with the Fund before the amnesty closes on 31st October.
