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Saturday, January 25, 2025
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FAZ Penalized K7.2 Million for NAPSA Default

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Football Association of Zambia (FAZ) has been hit with a K7.2 million penalty for failing to remit employee contributions to the National Pension Scheme Authority (NAPSA) over a ten-year period spanning January 2014 to 2024.

In a case heard before Lusaka Magistrate Constance Kansankala, FAZ General Secretary Reuben Kamanga admitted guilt on three counts of failing to meet statutory obligations under the National Pension Scheme (NPS) Act No. 40 of 1996.

Kamanga was fined K400 for each count, payable by the end of the working day on Thursday, failing which he would face a month in jail.

The court ordered FAZ to settle the outstanding K7,222,894.98 in three installments. The first payment of K437,806.98 must be made by January 31, 2025.

In mitigation, Kamanga pleaded for leniency, stating he was a first offender and had not wasted the court’s time.

He assured the court of his commitment to making the payments, citing an agreement already reached with NAPSA on the installment plan.

Magistrate Kansankala noted Kamanga’s cooperation but emphasised the seriousness of failing to remit statutory contributions.

In count one, FAZ failed to remit K280,710.25 in contributions, with cumulative penalties amounting to K4,804,273.14 for the period January 2014 to December 2017.

Count two involved K150,080.24 in unremitted contributions and K1,966,273.34 in penalties for the period February 2018 to November 2020.

In count three, the unpaid contributions amounted to K14,526.09, with penalties totaling K7,015.74 for the period March 2022 to December 2024.

While the court acknowledged Kamanga’s cooperation and first-offender status, Magistrate Kansankala stressed the importance of compliance with statutory obligations, warning that failure to adhere to payment deadlines could result in further legal consequences.

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