Chitungwiza Municipality sued by pension fund

Yeukai Karengezeka Court Correspondent

The Unified Councils Pensions Fund (UCPF) is suing the Chitungwiza Municipality at the High Court for $13,1 million in outstanding contributions.

The arrears have been accumulating up to November 11 last year.

This is after the council contravened the regulations in terms of the Pension Scheme Rules and failed or refused to remit the employees contributions to the pension fund company.

“The claim is for a payment of an amount of $13 131 583,79 being outstanding pension contributions due and owed to the Plaintiff as at 11 November 2019 by the Defendant in terms of a pension Fund Scheme operated by the plaintiff (Chitungwiza Municipality) in terms of an agreement by and between the plaintiff and defendant on behalf of its employees and the provisions of the Pension and Provident Fund Act and applicable Pension Laws which amount has been acknowledged by the defendant as due and owed to the plaintiff,” read the summons.

The pensions fund is also claiming a payment of interest on the amount at the prescribed rate of interest, calculated from the date of issue of acknowledgement to the date of full and final payment.

According to the claims, the company wants collection commission on the amount in terms of the Law Society by-laws, and for the Chitungwiza Municipality to pay the cost of the suit and client scale.

In the past, Chitungwiza Municipality acknowledged and confirmed its indebtedness despite its undertaking to settle the debt since 2017.

The local authority is yet to respond to the summons.