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CAG: Public bodies sit on workers` deducted cash
2008-04-12 10:38:43
By Judica Tarimo, Dodoma
Public authorities and other organizations failed to remit employees` contributions amounting to 29bn/- to the social and security schemes last year, a report issued by the Controller and Auditor General (CAG) revealed yesterday.
Unveiling latest financial statements of public authorities and other bodies contained in his report dated June 30, 2007, at a news conference in Dodoma, the CAG, Ludovick Utouh, expressed disappointment over the growing tendency among public authorities of failing to remit the deducted money.
The Auditor General recommended the implementation of urgent corrective measures to redress the situation.
``Statutory reductions amounting to 29,336,119,602/- have been remitted to the receiving agencies in the financial year ending June 30, 2007.
They deduct money from workers` salaries, but don`t remit it to the social schemes,`` the CAG said.
Of the amount in question, statutory deductions yet to be remitted to social schemes such as Parastatal Pensions Fund (PPF), National Social Security Fund (NSSF) and Public Sector Provident Fund (PSPF) totaled 23, 643,858,878/-, with taxes standing at 2, 210,703,119/-, according to Utouh.
``The trend disappoints employees, and more painfully the retired civil servants who had faithfully served this nation,`` said Utouh.
Some of the listed notorious parastatals include the Board of External Trade (BET), which failed to remit statutory deductions amounting to 142,859, 539/-, Tanzania Posts Corporation (6,613,767/-) and 196,741, 985/- relating to insurance premiums on staff life assurance policy and Sacco’s loan repayment deductions, respectively.
Other public institutions that have not remitted statutory employees` deductions are State Mining Corporation (Stamico), Muhimbili National Hospital (MNH) and National Ranching Corporation (NRC).
However, The CAG Report did not indicate specific figures which the institutions had failed to remit.
He recommended that public authorities, parliamentary committees and relevant state organs should work out a mechanism that would compel state institutions to remit workers` contributions.
``It`s discouraging to find civil servants who had worked for years, but struggle to get their pensions. I really sympathise with them,`` said Utouh.
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