The Business Center Corporation (BCC) has confirmed that it was unable to deposit employees’ pension contributions for three months due to a cash flow problem, but says the issue has now been resolved.
The information came to light after Afrah Ismail, under the Right to Information Act, requested pension payment records from state‑owned companies. The responses showed that three SOEs, WAMCO, BCC and RDC, have not been depositing pension contributions regularly.
According to the RTI response, BCC last deposited pension contributions in September last year, with no deposits made in the months that followed.
BCC Managing Director Ibrahim Ziyau told Sun on Wednesday that the delay was caused by a cash flow shortage late last year. However, he stressed that the employee‑deducted portion of the pension was kept aside and not used.
“The employees’ share is their right. It will not be touched or used by the company,” he said.
Under the Pension Act, employers must contribute an amount equal to the employee’s 7 percent deduction. Ziyau said BCC was unable to make its employer contribution for three months due to financial congestion.
Business Center Corporation. (Photo/BCC)
He added that the issue has now been resolved and two out of the three pending months have already been deposited.
Meanwhile, WAMCO has not deposited pension contributions for 14 months, with its last payment made in October 2024. The company told Sun that although pension deductions were made from employees’ salaries, deposits were delayed due to financial difficulties and unpaid invoices.
The Road Development Corporation (RDC) deposited MVR 1.1 million into the pension fund in December, according to the RTI sheet. However, the Pension Office said RDC still has outstanding contributions that have not been deposited.
The pension system is designed to ensure income security after retirement, with both employer and employee contributing 7 percent each of the employee’s salary. The total amount a person receives upon retirement depends on the savings accumulated in their pension account.