SOCIAL security funds need to initiate legal proceedings on employers failing in their responsibility of submitting employees’ contributions on time.

Prime Minister Kassim Majaliwa issued this instruction when adjourning the parliamentary Budget session yesterday, noting that there are employers showing chronic inability to submit the contributions on time. They need to be dragged to court as per the laws, he said.

“Pension funds’ boards and managements should properly use enabling legal provisions to ensure that contributions are submitted on time. Retirees should not struggle to get their pensions and other benefits, he stated.

Employers are required to submit employees’ contributions every month, and if six months pass without submitting the contributions, the fund is entitled to take legal measures, thus dragging the employer to court, he explained.

“It is important for our employers to adhere to the country’s labour law by submitting employees’ contributions on time so as to avoid inconveniences in future,” he said.

He urged pension funds to invest in innovative measures to facilitate timely payment of members’ monthly pensions or retirement benefits, “to ensure their peace of mind after serving the nation diligently.”

The government has set aside 787bn/-in fiscal 2024/25 estimates for provision of loans to 250,000 higher learning students, where 80,000 are freshmen women, he said, alluding to new guidelines on loan issuance, where the loans are handed over during a period of three months starting on June 1st.

During fiscal 2023/ 24 the government issued loans to 224,056 higher learning students, taking up 743.2bn/- or 94.6 percent of budgeted funds, he said, listing the relevant spheres as diploma, degree and practical legal studies, plus the Samia scholarships for science students.

The Higher Education Students' Loans Board (HESLB) targeted loan recollections amounting to 230bn/- but its achievement was way below target, at 161bn/-, affirming preparations to re-launch issuing 10 percent local government earnings as loans to special groups.

Section 37A (1) of the Local Government Authorities requires LGAs to set aside 10 percent of their total estimates for empowerment of groups of women, youth and people with disabilities (PwDs) at the 4:4:2 ratio, whose conduct was criticised by the Controller and Auditor General (CAG) and in April, last year the government suspended the procedure.

Current plans are to set aside 228bn/- to be issued to special groups, the premier affirmed.