SNPF

Compliance Section
Compliance
Billie Dlamini - Compliance Manager

The primary function of the compliance Section is to ensure that business that have employed Swazi Nationals who fall outside the exempted category do comply with the provisions of the Swaziland National Provident Fund King’s Order in Council No. 23 of 1974 in so far as employer’s obligations are concerned.

As already mentioned in previous articles the purpose of the scheme is to provide benefits to people who have ceased working due to old age or any other form that would render a person unable to work due to being incapacitated. For that to be realized employers are obliged under the Order to register as contributing employers.

The Registration of Contributing Employers Order of 1975 under Section 8 and 9 obliges employers to register and pay contributions on behalf of their employees. It is therefore the duty of the Compliance Section to foster compliance. The section does that in three ways that is education, persuasion and prosecution.

 
Employer Education

This aspect is carried out at the instance of the Fund or at the volition of the employer. The employer may request the Fund to educate its officer who will be mainly concerned with handling Provident Fund issues in terms of payments and making returns.

Compliance The most important aspect of this part is to identify who is eligible to be contributed for and the levels of the contributions.

Also of paramount importance are the identities of contributing members such as name, year of birth, surname and graded tax number of each employee. After having done the returns the second most important aspect is when to make payment to the Fund. Payments are expected to reach the Fund within 21days after the month to which they relate. If payments are received after 21 days Section 21 of the Kings Order is invoked. This section imposes a penalty of seven and a half per cent on the amount remaining unpaid for a month. Employers are urged to avoid paying after 21 days because this is detrimental to their business.

 
Employee educational forums
Employees are also educated for them to understanding their obligations with regards to provident fund contributions. It is the obligation of all employees to give their employers correct information pertaining to their names, date of birth and correct graded tax numbers. Education is also extended to explain to them as to when and how to access their benefits.
 
Records Keeping
Employers are urged to keep records of their employees. These records must show who was employed when and how much that person was paid. All deductions especially the statutory ones must be indicated on the records. The major record book is the wages book. Some other records such as time book attendance register and cloak cards also come in handy.
 
Inspectorate

Section 6 of the SNPF Order provides for the appointment of inspectors. The duties of the inspectorate are articulate in that section. Chief amongst the duties of the inspectors is to conduct inspection whereby they demand to see records as to ascertain if the order is complied with. Employers are urged to demand identify cards form these inspectors to avoid unscrupulous people posing as the Fund inspectors.

Inspector’s conduct what is called door to door inspections, the purpose of which is mainly to make sure that every business is registered with the Fund. Secondary to that is to ensure that the employer is meets her obligation that follows after the registration process. Routine inspections are also conducted for specific purposes that have been identified with any particular employer. It is during these inspections that employers are persuaded to comply with the Order in terms of making timeous payments and paying for all eligible employees.

 
Prosecution
After having done all the above with not much success, as a last resort the Fund is then forced to take legal action against non complying employers. For ease of reference Section 36(i) (a)-(g) will be reproduced hereunder to make employers aware what is criminal action in terms of the Order.
 
Order Citation

36. (1) any person shall be guilty of an offence and liable on conviction to a fine not exceeding E 1 000 or imprisonment for a term not exceeding twelve months, or both, who –

  1. for the purpose of evading payment of any contribution by him or some other person knowingly makes any false statement or representation;
  2. fails to register within the period specified in or under section 8 when required under such section to register;
  3. when required by or under this Order to furnish any information, without lawful excuse, fails to disclose that information or furnishes information which is false;
  4. fails to pay to the Fund within the period specified in section 14 or 16 any contribution which he is liable to pay under this Order;
  5. obstructs any inspector, officer or servant of the Fund in the discharge of his duties as such;
  6. fails without lawful excuse to produce documents which he has been required under this Order to produce; or
  7. knowingly deducts from an employee’s wages any amount by way of the employee’s share which is in excess of the amount due to be deducted under this Order.

Chairman's Statement

Chairman Mr. Jobe Mashwama
Chairman of the SNPF Board.
"The unlocking of liquidity constraints within our property investments through the Property Unit Trust will soon be commissioned following the appointment and signing of agreements with the identified agency".....

Read the full statement in the 2012 Annual Report