AMA dragged to court for not paying GH¢1.4m in SSNIT contributions to employees

Accra Metropolitan Assembly (AMA) has been dragged to court for failing to pay the Social Security and National Insurance (SSNIT)Trust contributions for its staff for nine years.

The assembly failed to pay the contributions of its staff amounting to GH₵ 2.9 million from 2001 to 2009.

The total sum represents accumulated SSNIT contributions and penalties imposed on the government institution for reneging on obligations to settle the debt.

Also named in the suit before an Accra Circuit Court is Mr Benjamin Armah, the AMA Coordinating Director, responsible for the payment of SSNIT contributions.

The defendants have been slapped with two charges – failure to pay social security contribution and failure to pay penalty on social security contributions, contrary to Sections 83 (1)(d)(h) of the National Pensions Act, 2008 (Act 766) as amended by section 7 of the National Pensions (Amendment) Act, 2014 (Act 883).

The facts of the case, according to the prosecution are that although the AMA is duly registered to the SSNIT scheme it failed to pay the contribution of workers for nine years.

“Inspection conducted for the period January 2001 to October 2009 into the books of the establishment (AMA) revealed that the accused persons had to pay social security contribution for their employees to the tune of GHC 1, 409, 483.50 [but failed] contrary to the National Pensions Act,” Prosecuting Officer, Nana Ama France –Mensah.

The AMA failed to pay a penalty of GH 1, 519, 957.73 for delayed payment resulting in a total indebtedness of GHS 2, 929, 441,23.

Before being dragged to court, the two institutions had an agreement of which the AMA was said to have breached its part of the bargain.

A memo dated October 29, 2019, and signed by Gifty Turkson, a Branch Manager of SSNIT and copied to the Accra South Area Manager of SSNIT said the AMA “indicated that they would be grateful to have 60-month negotiation plan to pay their debts” due financial difficulties.

However, the AMA did not abide by the proposed plan of settlement.
The accused persons have, therefore, been served with sermons and due to appear at the SSNIT court in the next few weeks.