Local Authorities Superannuation Fund (LASF) chief executive officer Remmy Pepala yesterday told the Public Accounts Committee (PAC) that the institution is headed for extinction because it is in a financial crisis.
Mr Pepala said LASF owes 3,400 retirees a total of K244 million in unpaid terminal benefits.
Speaking when he and Ministry of Local Government and Housing permanent secretary Stanford Msichili appeared before the committee chaired by Luena member of Parliament (MP) Gertrude Imenda (ADD) yesterday, Mr Pepala said LASF is failing to meet its obligations.
LASF appeared before the committee to respond to audit queries raised in the 2013 Auditor General’s report.
The Local Authorities Superannuation Fund was created under Government Notice No. 314 of 1954.
It is a benefit scheme for local authorities employees.
The Fund covers employees of the local authorities and water utility companies who joined the local authorities prior to 1 February 2000, including those employed by ZESCO Limited and the National Housing Authority. As at December 2006, the total membership of the Fund stood at 21,642.