Business Reporter
THE money owed by local authorities across the country to the Local Authorities Pension Fund is now in excess of $120 million.
As a result LAPF chief executive Charles Mandizvidza said the backlog on pension remittances had remained unchanged.The Fund presently has more than a 10- month backlog in the payment of monthly pensions.

“The major reason for non-payment of contributions is the illiquidity in the economy which has negatively impacted on all economic players in Zimbabwe.

“We continue to engage the local authorities in an effort to stem the problem, however, no major breakthrough has been achieved to date,” he said.

The Fund last year even engaged the Ministry of Local Government, Rural and Urban Development over the issue.

“Our engagement with the Minister of Local Government last year was part of our ongoing consultations with relevant stakeholders with the objective of seeking a solution(s) to the Fund’s long running and deep seated financial challenges,” he said.

Mandizvidza had previously said the Fund’s Trustees empathized with the plight of pensioners emanating from the delays being encountered in remitting their monthly pensions and concerted efforts were being made to redress and normalise the situation.

“The Fund has on board a number of strategies revolving around the engagement of the errant subscribing member local authorities persuading them to comply with pensions legislation which requires employers to remit pension contributions by the 14th day of the month following that in which the deductions were made,” he said.

The fund has approximately 30,000 pensioners and 46 contributor members and it relies heavily on contributions from local authorities which constitute 80 percent of their income.

Turning to the fund’s investments, he said their performance has been lacklustre.

“This mirrors the existing adverse economic environment that we are operating in,” Mandizvidza said.

LAPF properties include LAPF House, LAPF Centre in Harare, LAPF House in Bulawayo Montagu Centre, Liquenda House, Marimba Shopping Centre and Jameson Hotel. It also jointly owns Kadoma Ranch Motel.

Mandizvidza’s comment comes on the backdrop of  concern by some pensioners over delays in the payment of their pensions by the fund with some claiming that they had not been paid for several months.

Some of the pensioners have questioned why the Fund was failing to pay them when they own several buildings across the country.

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