Court orders logistics firm to pay 467m/- to PSSSF

DAR ES SALAAM: THE High Court in Dar es Salaam has ordered Pathfinder Logistics Limited to pay more than 467m/- to the Public Service Social Security Fund (PSSSF) for unremitted employees’ contributions and accrued statutory penalties covering a period of 35 months.

Judge Awamu Mbagwa issued the order after granting a summary judgment in favour of the PSSSF, the plaintiff, against Pathfinder Logistics Limited, the defendant.

The court directed the company to settle the outstanding contributions covering the periods from June 2012 to August 2014, March 2015, and July 2018 to January 2019.

“The defendant is ordered to pay the sum of 467,451,645.72/-, being the outstanding amount (principal contributions and accrued interest) for 35 months from June 2012 to August 2014, March 2015, and July 2018 to January 2019,” the judge ruled. Judge Mbagwa further ordered that the defendant pay interest at the court rate of seven percent per annum on the decretal amount from the date of judgment until full payment is made.

A summary judgment is a court decision issued in favour of one party without a full trial when there is no genuine dispute on the material facts of the case.

The court noted that after the plaint was filed, the plaintiff was directed to serve the defendant. Service was successfully affected and on September 10, 2025, the defendant appeared through Advocate Ibrahim Shineni.

During that appearance, the defence counsel informed the court that the company intended to file an application seeking leave to appear and defend the suit.

However, by December 15, 2025, when the matter came up for mention, no such application had been filed. The defendant also failed to appear before the court to explain the delay in filing the application.

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Consequently, upon the plaintiff’s request, the court proceeded to determine the matter in accordance with the law.

According to the material facts presented, Pathfinder Logistics Limited has been a contributing employer to the PSSSF since January 1, 2012, after being assigned membership.

As a contributing employer, the company was required to remit monthly statutory contributions for its employees at a rate of 20 per cent of each employee’s salary, comprising 10 per cent deducted from the employee’s salary and another 10 per cent contributed by the employer.

However, the company defaulted on remitting the contributions for 35 months, specifically from June 2012 to August 2014, March 2015, and July 2018 to January 2019, despite several reminders from the fund.

At the time the suit was filed, the total outstanding amount stood at 467,451,645.72/-, of which 43,960,000/- constituted the principal contributions while 423,491,645.72/- comprised accumulated statutory penalties.

Due to the defendant’s continued failure to clear the arrears, the PSSSF filed the suit seeking recovery of the outstanding amount.