'Impossible’ for ANC to pay R10m a month to recover staff provident funds – expert

The Financial Sector Conduct Authority confirmed on Wednesday that the party owes R86 million in provident fund contributions for 535 of its staff members.

The party has since signed an agreement with the FSCA to pay R10 million per month into the fund until it is up to date again.

However, Friedman says it is impossible for the party to afford the amount when it cannot even pay monthly salaries.

The party has been struggling with financial challenges over the past years, with workers having to strike every month before their salaries are paid.

It also owes the South African Revenue Service more than R102 million in taxes.

"They have deducted the provident fund contributions from the staff members but they actually haven't allocated that money for its purpose,” says Friedman.

“It looks like that's going back from nearly three years, as it currently stands those members have nothing to their name from the contribution that they have made.

“Over and above the provident fund element, there is also a massive UIF issue, and there is a PYAE issue they owe SARS over R102 million. I suppose it is a very deep hole that they have gotten themselves into and their strategy from what I can see is to try and retrench 50% of their workforce, but obviously, in this process, the workers are gonna be reliant on UIF and provident fund, the quite crucial things that ey were hoping to fall back on hasn't been paid. It's a major problem for employees.

"If they can't even pay their salaries, how are they gonna pay an additional R10 million a month? That's definitely not going to happen. I don't really see an easy way out of this for them, but obviously, the FSCA has to be involved from a provident fund perspective but SARS is also involved because of over an R100 million debt, I don't think there is an easy way out for them but some of the employees are gonna lose.”

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