Zambia Electricity Supply Corporation (ZESCO) is facing pressure after a recent Auditor General’s report revealed a K16 million in unremitted pension contributions owed to the National Pension Scheme Authority(NAPSA).This non-compliance not only raises red flags for the company’s financial practices but also jeopardizes the benefits that employees expect to receive upon retirement.
According to Section 15(1) and (2) of the National Pension Scheme Authority (NAPSA) of 1996, contributing employers are required to remit contributions monthly. However, ZESCO’s
failure to adhere to this obligation has significant implications for its workforce. Private Sector Development Association Chairperson, Yusuf Dodia, voiced his concerns emphasizing the detrimental impact on employees’ retirement benefits.
In an exclusive interview with the Zambian Business Times -ZBT, Dodia pointed out that employees are expected to claim their benefits after retiring, but their benefits will not be forthcoming if ZESCO has not remitted the payments that were due over the years.”
He called on ZESCO to take immediate action to prevent potential industrial unrest stemming from the non-payment of terminal benefits. The commercialization of the energy sector has also come under fire, with Dodia describing it as a critical error that has placed undue strain on companies like ZESCO. He urged the government to reconsider this approach and reinvest in the energy sector to support both social and economic development.
Adding to the discourse, Dodia cautioned against adopting foreign ideas without consideration for Zambia’s unique economic landscape. “What works in Europe cannot necessarily work in Zambia because we are at different stages of economic development,” he warned, highlighting the need for tailored solutions that address local challenges. Meanwhile, efforts to get a comment from ZESCO management proved futile by press time
