The Sunday News
Thulani Ndlovu Business Correspondent
THE National Social Security Authority is suing ailing company, Belmont Printers for failing to submit statutory contributions amounting to $17 000 to the organisations for a two-year period between March 2011 and 31 May 2013.According to court papers filed at the Bulawayo High Court last week, NSSA is demanding an initial amount of $17 000 which surges to about $30 000 with interest and collection commission fees.
NSSA said the Bulawayo company had failed to meet its obligations on national pension contributions, national pension surcharge, Workers Compensation Insurance Fund Premiums and Workers Compensation Insurance Fund.
NSSA allege that they wrote a letter of demand addressed to Belmont Printers dated 6 August 2013, requesting payment of the premiums.
In the same month Belmont Printers wrote back to NSSA asking for a payment premium schedule up to the period of May 2013.
“On August 15 Belmont Printers wrote to our legal practitioners of record asking for a schedule for the period up to May 2013.
“In a letter dated 15 August 2013 our legal practitioners of record wrote back to Belmont Printers giving them two schedules. These two schedules are acknowledgement of debt,” said Mr Dumisani Ncube senior compliance inspector of NSSA.
Furthermore, Mr Ncube said Belmont Printers were given an opportunity to come up with a flexible payment plan to liquidate their debt but the company refused to take advantage of the offer.
Belmont Printers have strenuously denied owing NSSA and they have filed a notice of intention to defend the claim.
Due to liquidity constraints, antiquated machinery, power challenges and competition from cheap imports, local industries are struggling to produce competitive products and settle their debts.
Before the adoption of a multicurrency system in February 2009, the country’s manufacturing sector was operating at an average of 10 percent capacity utilisation with Government setting a target to achieve 60 percent capacity utilisation by the end of the same year.
However, the manufacturing sector which requires about $8 billion working capital, is yet to achieve the 60 percent capacity.
According to the Confederation of Zimbabwe Industries, the manufacturing sector last year recorded a 39,6 percent capacity utilisation compared to 44,9 percent in 2012.
An industrial representative body Empowerment Action Group attributed the decline in capacity utilisation levels among other fundamentals to liquidity crunch, power challenges and obsolete equipment.
