Mozambique: Nacala port handles record volume of cargo in 2023 after upgrade
DW / Bosses have to pay the rebates or be in contempt, lawyer Faizal Castigo says
Companies in Manica province, central Mozambique, owe tens of millions of meticais to Social Security, but say it is difficult to pay because of the ongoing economic crisis. The government however is resolute, and has already filed a complaint in court.
Companies are deducting social security contributions from workers’ wages but not paying them over to the National Social Security Institute (INSS), INSS delegate in Manica, Suzana Carlos Jemusse says.
“This also indirectly penalises =beneficiaries and their families, who should be enjoying the benefits provided by law. This is bad faith on the part of employers,” she says.
There is already a publicity campaign targeting non-payers.
Social Security says 54 million meticais (EUR 750,000) is owing from a total of 640 companies.
“These are tax debtors. Some leave, others regularise, others remain active, others close leaving a debt situation,” Jemusse explains.
Retirement pensions at stake
The secretary of the Mozambican Workers’ Organisation (OTM) in Manica, Rosalina Kudzica, condemns the employers’ attitude.
“Our role is first to inform the workers themselves, who do not even know that their contributions are not going to the INSS, because later this may affects workers when they need assistance,” she says. Kudzica points out that sickness and retirement benefits are also at stake.
Samuel Guisado, president of the Provincial Business Council (CEP) told DW Africahe did could not provide the list of debtor companies so as to assess whether or not in fact they were handing over the Social Security contributions.
“It is important for the Institute to look on a case-by-case basis and see what, in fact, the problem is at these companies, and work with them to solve difficulties, otherwise these companies may close,” he says.
Guisado says it was important that the CEP, as private sector representative, have “the list of those companies that they consider to be large debtors” so as to establish what steps to take.
“We invite these businesspeople, together with Social Security, to discuss corrective measures to make the company profitable so that it can pay, or persuade it to make the payment,” he says.
Employers have to pay
Lawyer Faizal Castigo says there is no going back: employers have to pay employee contributions to Social Security. Otherwise, they are violating the law and the INSS can take action.
“The INSS, if it wishes, can press the Ministry of Finance’s tax enforcement services to seize the assets of a dishonest businessperson or company which does not channel the contributions correctly. The injured party can also press for breach of trust,” he explains.
Manica province has more than 6,000 companies, employing more than 79,000 workers.
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.