Court orders companies to pay debts to SSNIT

Takoradi, April 21, GNA - The Takoradi Circuit Court has warned that it would apply sanctions against companies owing a total of 7.8 billion cedis to the Social Security and National Insurance Trust (SSNIT).

The debts are contributions deducted from workers salaries, which the companies failed to pay to the Trust contrary to PNDC Law 247. Mr Justice George Koomsom Presiding gave the warning when six of ten companies owing SSNIT reappeared on Friday.

They first appeared on March 13 for failing to pay workers contributions as stipulated by the law.

Mr. Christian Victor Wood-Ackom, SSNIT Prosecutor, had told the court while some of the companies had negotiated with SSNIT to reschedule payments others had not shown any seriousness to honour their debts. Out of the total amount, Western Veneer and Lumber Company (WVLC), a wood processing company owe SSNIT 6.8 billion cedis. Mr. Justice Koomson told the Management that even though the company had been placed on divestiture that was not an excuse to default in the payment of workers contributions to SSNIT. "Since you have workers you are obliged by law to pay what you deduct form their salaries as SSNIT contributions to the Trust," he said. Mr. Koomson also ordered SSNIT officials and the Management of Takoradi Hotel to go into the books to determine the exact amount the hotel owed SSNIT.

He called for the reconciliation since the hotel management was disputing the amount and the case was adjourned to May 25, 2006. Mr. Koomson warned that it was going to be the last adjournment and an opportunity for the companies to demonstrate good faith. The other Companies that appeared were the Western Hardwood, RAD Forest Products, Intex Company and Danimens Mechanical Engineering Limited.

In a related development, 20 other companies that owe SSNIT various sums in default of workers contributions have appeared before the court. An official told the GNA that many of the companies were rushing to pay or negotiate payment with the Trust. 21 April 06