PENCOM TO MAKE COMPLIANCE CERTIFICATE COMPULSORY FOR FEDERAL CONTRACTORS IN 2012
National Pension Commission (PenCom) at the weekend, said that henceforth, organizations bidding for contracts with ministries, departments and agencies (MDAs) without a compliance certificate from the commission, would be disappointed.
This is because the commission has concluded arrangements to commence the issuance of compliance certificates to any contractor seeking to win government projects in the MDAs in January 2012. He said the document will be a yardstick for winning such jobs.
This is part of the commission's latest efforts to drive home the implementation of the Provisions of Act 2004, mandating it to ensure that every organization in Nigeria is captured with pension payments and remittances.
According to the Head, PENCOM's Compliance and Enforcement, Mohammed Bello Umar, at the just concluded workshop organized for Business Editors, Finance, Insurance and Labour correspondents in Enugu, the c ertificate would be renewed annually and the organizations requesting for compliance certificate must provide comprehensive evidence of compliance up to December 31, 2011.
He explained that the commission would commence the recovery of outstanding contributions together with interest from defaulting organizations in line with section 11(7) of the pension reforms Act(PRA) of 2004.
Also, Umar stated that the selection of firms interested in providing services of Recovery Agents would be concluded during the month adding that the recovery exercise would also commence in january,2012.
On the challenges encountered by the commission, Umar said: ”In the public sector, especially in Federal and States, we envisage
Data integrity of personnel profiles from MDAs, absence of centralized personnel database in correct/incomplete documentation by employers during registration would pose problems. Failure of MDAs to submit staff nominal roll to the commission always delays the process of enacting relevant laws; irregular funding of RSAs by some state governments as well as failure to remit amounts deducted will also pose difficulties.
Speaking about the Private Sector, Umar remarked that weak business environment, reluctance of some employers due to perceived increased personnel cost, non or irregular funding of contributions as well as remittance without correct schedules are also envisaged problems the commission will have to grapple with when the exercise commences. However, he assured that the commission would develop a comprehensive employer Data Base to ensure that such envisaged problem does not arise.