Court orders EFM to pay 898m/- unremitted pension contributions

DAR ES SALAAM: THE High Court, Dar es Salaam Sub-Registry, has ordered the EFM Company Limited to pay over 898m/- being unremitted members’ contributions from March 2019 to August 2022.

Judge Hamidu Mwanga gave such orders after granting a summary judgment sought by the Board of Trustees of the National Social Security Fund (NSSF), the plaintiff, against the defendant company.

He said that the amount claimed of 898,611,100.29/- being unremitted members’ contributions included 600,676, 336.14/- as outstanding principal amount and accumulated penalties amounting to 297,934764.15/-.

The judge noted that the defendant was properly served but defaulted to enter appearance and defend the suit in pursuance thereof the plaintiff was entitled to summary judgment as provided for under Order XXXV, rule 2 of the Civil Procedure Code.

“For the foregoing, I proceed to enter Summary Judgment in favour of the plaintiff and it is hereby ordered that defendant shall pay the plaintiff the sum of 898,611,100.29/- being unremitted members’ contributions plus accumulated penalties,” he declared.

ALSO READ: US unveils mosquito net initiative in Zanzibar

The judge further ordered the defendant company to pay interest on the principal sum from March 2019 when the sum accrued to the date of judgment at an overall lending interest rate of 17.27 per cent per annum as published by Bank of Tanzania (BoT) Economic Monthly Review, August 2022 publication.

Furthermore, the court directed the defendant company to pay interest on the decretal sum at the prescribed Court rate of 7 per cent from the date of delivery of judgment until the same shall be fully satisfied and also pay costs of the suit.

A summary judgment is a judgment entered by a court for one party and against another party without a full trial.

In this kind of case, the judge considers the pleadings and court documents filed and then decides if one side deserves to win as a matter of law.

It was broadly pleaded that the defendant is the plaintiff’s registered contributing member as an employer from 23 January 2015 with membership Certificate No. 1004144. Under the law establishing the plaintiff, the defendant is required to remit its compulsory contribution and that of its employees at the rate of 10 per cent for the plaintiff and 10 per cent for the employer, all making a total of 20 per cent of the (member) employee’s wage.

It is documented that, the defendant had failed, neglected, ignored, and or defaulted to remit the stated sum. Upon filing the suit and having effected service the defendant had entered appearance and applied to defend the suit.

However, it appears that the defendant lost interest in the case as the application was dismissed for want of prosecution for consistence none appearance.

In that regard, the defendant waived her right to defend this suit. The defendant’s act of ignoring, delaying and defaulting to remit the said contributions is not only against the law but also denies employees rightful pension benefits in the event of their retirement, death and or when leaving the scheme in any whatever manner.

Related Articles

Back to top button