Brother of the former President Mahama whose construction company is facing legal action over the non-payment of workers social security contributions says, it has settled all arrears.

Engineers and Planners, owned by Ibrahim Mahama, said in a statement it has paid GHC2 million which includes actual arrears of GHc668,754.75 and penalty of GHc387,709.31 which was imposed by SSNIT.

The payment plan with SSNIT was to settle GHc1,056,464.06 in 12 monthly instalments from February 2017 ending in January 2018.

E&P  was to pay the first instalment in February 2017. But it says it missed the payment date by two days. Nonetheless, the company says it has settled all the debt in three months.

This has not stopped SSNIT from dragging the company to court over the payment.

SSNIT says E&P breached National Pensions Act, 2008 (Act 766), and the National Pensions (Amendment) Act 2014 (Act 883) when it failed to pay employee contributions.

At a hearing in a specialised SSNIT Court in Accra last week, the lawyers for E&P told the magistrate Ms Afua G. Sackey that they were under “the impression that once that has been done, there will be no legal action’’.

They are to re-appear on May 13, 2017.

With the issue a matter of media interest, E&P has released a statement explaining circumstances leading to the court proceedings.

The construction company explained that on December 22, 2016, it entered into a negotiated agreement SSNIT for the payment of arrears of social security contributions of GH¢1,601,051.78.

The amount is the contribution of employees of the company between February and July 2015, June to August 2016 and October 2016 as well as penalty amount for failure to make the payment.

After it delayed in honouring its February 2017 instalment by two days, SSNIT on March 2, wrote to E&P to serve notice that it had abrogated the negotiated agreement due to the failure of the company to honour its first monthly obligations.

According to the statement, E&P made a request for SSNIT to reconsider its decision to abrogate the negotiated agreement but SSNIT declined the request.

 

READ STATEMENT

 

ENGINEERS & PLANNERS HAS SETTLED SSNIT CONTRIBUTIONS

• On 22nd December 2016, SSNIT entered into a negotiated agreement with Engineers & Planners as it does with all clients for the payment of arrears of social security contributions of GHc1,601,051.78.

• By the terms of the agreement, E&P were required to make 12 monthly instalments commencing February 2017 ending in January 2018.

• As at 28th April 2017, E&P had made a total payment of over GHc 2 million (GHc2,723,212.36) in full satisfaction of all outstanding arrears and penalties.

• JUST TWO DAYS DELAYED PAYMENT - On March 2 2017, SSNIT wrote to E&P to serve notice that it had abrogated the negotiated agreement due to the failure of the company to make the instalment payment for February 2017, as a result of two (2) days of delay in paying the first instalment.

• E&P informed SSNIT that it had made efforts to make the payments for February as agreed but for unexpected delays in their receivables on current contracts and convincingly committed to paying. A promise it has fulfilled.

• E&P further made a request for SSNIT to reconsider its decision to abrogate the negotiated agreement. SSNIT declined the request.

• Instead, on 13th April 2017, a summons was issued to E&P to appear before the District Court on 29th April 2017 to answer a complaint of failing to pay SSNIT contributions of GHc668,754.75 and penalty of GHc387,709.31 totalling GHc1,056,464.06.

• Once again it is worth noting that, E&P has paid over GHc 2 million (GHc2,723,212.36) in full satisfaction of all outstanding arrears and penalties.

• Counsel for Engineers and Planners has informed the court that the company has fully paid off the outstanding amounts due SSNIT.