[Photo: File]

Employers who fail to clear outstanding Fiji National Provident Fund (FNPF) contributions by the end of next month could face legal action.

The warning comes as the FNPF reveals that 2,446 employers currently owe approximately $9.8 million in unpaid member contributions.

FNPF Manager Member Services Alipate Waqairawai is urging employers to take advantage of the current amnesty period and settle their outstanding debts before enforcement measures are taken.

Waqairawai says the fund has several legal powers available to recover unpaid contributions, including preventing employers from leaving the country.

“We’ll stop you from DPO from leaving Fiji, you’ll be stopped at the airport and you can’t go or if you’ve got a contract with order to third party for example if you are employed you’re a cleaner that’s sub-contracted to any company to clean we can go directly to MHCC and tell them to pay the amount directly to us”

However, he stresses that the fund’s preference is to work collaboratively with employers rather than resort to legal action.

“Using those powers is very expensive we don’t wanna use that we want to resolve it in a very positive manner and a very friendly manner rather than re resorting to all those powers that are quoted in our act”

FNPF Team Lead Compliance Rajni Devi says the fund is unable to publicly identify employers with outstanding obligations, despite the significant amount owed.

“What we do is we’re not obligated neither are we allowed to advertise or list any of these employers like any of those debters they usually do advertisement and stuff for them to come forward we do not do that rather the team is reaching out to them individually to the employers themselves”

The fund is instead engaging directly with employers to encourage compliance and settlement of overdue contributions.

FNPF says unpaid contributions have a direct impact on members, as delays reduce funds that should be credited towards their retirement savings and investment earnings.