After short-listing a number of institutions that are defaulting on pension contributions, Social Security Fund of Rwanda (SSFR) has received a backlash. Institutions including Rwanda Horticulture Development Authority( RHODA) and Programme d’Appui aux Malades du Sida et Orphelins Rejetes (PAMASOR) have accused, the pension body of falsely short listing them as defaulters The short listed institutions were a result of an audit that was carried out from 2000-08. According to SSFR, certain institutions have under declared employees’ pension contributions, while others have delayed to remit and declare their payments. The software SSFR uses automatically record a fine when their client does not meet the deadline hence institutions accumulating debts. “Our system is built in a way that when you delay declaration of your employees every term a penalty is automatically calculated on to your entry in our data bank,” Oswald Munyandekwe, Director of Contribution and Benefits told The New Times mid this week. SSFR claims that in 2007, RHODA delayed payments and declarations of employees’ pension contributions in the 3rd term of 2007 and 2008 hence incurring penalties. The pension body also noted that RHODA under declared its employees pensions in 2007. Peter Muvara the Director of RHODA maintained that the institution has no debts and neither have they delayed to remit nor declare their subscriptions. “We have all evidences signed and stamped by SSFR that we have cleared pension contribution fully and on time,” Muvara said on his cell phone yesterday. Under declarations have been mostly in connection with not declaring employees’ gross salaries that includes allowances. “Most of them declare only net salary instead of gross salary, even though they have really been complying, the findings of our auditing team have indicated that all allowances have been neglected yet they have the law they can refer to. This law indicates well what to declare or not,” Munyandekwe explained. Another private non-government organsation, PAMASOR criticised SSFR for not being vigilant in their auditing procedures. Valens Ndonkeye PAMASOR’s Director of Finance and Administration claims that when SSFR audited their organisation, they calculated even transport allowances included yet that is against the law. According to the Law of August 22, 1974 that guides the pension body, pension contributions is a percentage deducted from an employees’ gross salary but article 9 subsection 3, stipulates that transport allowance is exempted. Even after complaining to SSFR, PAMASOR says the pension body ignored their query concerning the audit findings and went ahead to blacklist it on the pension defaulter’s list. “Seeing ourselves in a paper affects our image and trust with our influential partners and employees too,” Ndonkeye added. Munyandekwe said that other institution both public and private have also under declared their employees salaries which he strongly warned it was cheating. “Most institutions have come to our offices and we have showed them how their debts accumulated in our data base, those we give letters have either delayed payments or declarations, and there others we give warning letter before we put their property on public auctioning,” Munyandekwe said. Ends
