Harare sued over employees’ contributions
HARARE City Council (Harare) has been hit with a $110 million lawsuit after failing to forward its employees’ contributions to the Local Authorities Pension Fund (LAPF).
In summons filed in the High Court, LAPF wants $110 774 802, 90 with 15 percent interest per annum.
According to the summons, Harare is a member of LAPF’s principal pension scheme and is obliged to deduct its employees’ pension contributions from their salaries. The court heard Harare is supposed to forward the contributions to LAPF by the 14th day of the month which comes after the deduction would have been made.
In terms of the pension fund rules when a member accrues arrears in respect of contributions they attract interest at a rate determined by LAPF’s management committee which is currently pegged at 15 percent per annum.
The court heard between August 3, 2017 and July 25 this year Harare failed to forward its employees’ pension contributions and accumulated $110 774 802, 90.
Harare is said to have acknowledged the debt in February but have not made any effort to clear the arrears.
“Defendant has at all material times acknowledged the debt, with the latest acknowledgement being in February. Despite demand, the defendant has failed and refused to pay the plaintiff $110 774 802, 90,” reads the summons.