The National Pension Commission (PenCom) has accused Pension Fund Administrators (PFAs) of not crediting pension contributions.
In the Commission’s Pension Summary First Quarter 2016 report, PenCom stated that other major issues observed from the review of Compliance Reports forwarded by the operators during the period were the failure of PFAs to fill vacant top management positions and delays in the payment of retirement benefits to retirees.
It added that it has forwarded letters to the operators involved on the issues and have been reviewing responses with a view to resolving them.
On Corporate Governance, the commission noted that the routine examination on one of the PFAs last year revealed issues bordering on its operational activities.
“The 2015 Routine Examination on one of the operators revealed issues bordering on Corporate Governance in its operational activities.”
Consequently, the commission placed monetary sanction on the operator for violation of its licensing conditions; issued caution letter to the managing director to desist from any act capable of undermining the independence of the compliance officer and internal auditor; and issued warning letter to two of its directors for not upholding sound corporate governance, which requires high ethical conduct at all times.
