NSSF EDEN SCHOOLS LIMITED

IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA IN THE SUB-REGISTRY OF MWANZA AT MWANZA CIVIL CASE NO. 26535 OF 2024 THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND ………………….….…………. 1ST PLAINTIFF THE ATTORNEY GENERAL ……………………………………………… 2ND PLAINTIFF VERSUS EDEN SCHOOLS LIMITED ………………………………………………… DEFENDANT JUDGMENT 17/3/2025 & 28/3/2025 ROBERT, J:- The Plaintiffs, THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND and THE ATTORNEY GENERAL, instituted this suit against the Defendant, EDEN SCHOOLS LIMITED, seeking an order for payment of outstanding principal members’ contributions amounting to TZS 64,260,000/=, interest on the decretal sum at the court rate of 7% from the date of judgment until full satisfaction, and costs of the suit. The 1st Plaintiff, the Board of Trustees of the National Social Security Fund (NSSF), is a statutory body responsible for management and administering of the statutory contributions made to the Fund by the 1 contributing employers in accordance with the National Social Security Fund Act. The Plaintiff alleges that, the Defendant, Eden Secondary Schools Limited, was registered as a contributing employer of the Plaintiff in accordance with the provisions of the National Social Security Fund Act and was issued with Registration Certificate No. 1007300. Under the law, the Defendant is obligated to remit a monthly statutory contribution amounting to 20% of the employees’ wages, comprising 10% from the employer and 10% from the employees. Despite this statutory obligation, the Defendant failed, neglected, or refused to remit members' contributions to the Plaintiff for various periods, leading to an accumulation of arrears amounting to TZS 64,260,000/=. This failure not only contravenes the law but also denies employees their rightful pension benefits upon retirement, resignation, or death. Despite several demands and notices issued by the Plaintiff, the Defendant failed to comply with its statutory obligation. Consequently, the Plaintiffs instituted this suit. 2 The Defendant failed to file a Written Statement of Defence (WSD) or enter an appearance, leading to the matter proceeding ex parte under Order VIII Rule 14 of the Civil Procedure Code [Cap. 33 R.E. 2019]. To substantiate the claims, the Plaintiffs called one witness, PW1, Ms. Cecilia Motatiro Johannes, a Senior Compliance Officer at NSSF Mwanza. She testified that the Defendant was duly registered with NSSF and assigned registration number 1007300. PW1 presented the Certificate of Registration (Exhibit P1) as evidence of the Defendant’s registration. PW1 further testified that after an inspection conducted on 19 February 2024, it was confirmed that the Defendant had an outstanding statutory contribution of TZS 64,260,000/=. The findings were communicated to the Defendant’s Director in an exit meeting, and the Exit Meeting Report (Exhibit P3) was signed by the employer as confirmation. The Plaintiffs also tendered the Notice of Statutory Inspection (Exhibit P2), the Schedule of Arrears (Exhibit P4), and the Reminder Notice (Exhibit P5), all of which were admitted in evidence. The primary issue for determination in this case is whether the Defendant is liable to pay the outstanding statutory contributions amounting to TZS 64,260,000/=. 3 The evidence presented by PW1, supported by documentary exhibits, sufficiently establishes that the Defendant was registered as a contributing employer and was obligated to remit monthly contributions amounting to 20% of employees’ wages which makes a total of TZS 64,260,000/=. Given that the matter proceeded ex-parte due to the Defendant’s failure to defend the suit, the evidence presented by the Plaintiffs remains unchallenged. The Defendant’s failure to remit employees’ contributions contravenes Sections 11, 12, and 13 of the NSSF Act. Section 11 mandates every contributing employer to register and comply with the statutory obligations of making timely contributions. Section 12 stipulates the employer’s duty to remit both the employer’s and employee’s shares within one month following the contribution period, while Section 13 provides for the deduction of employees’ contributions from their wages. The Defendant’s failure to comply with these provisions not only breaches statutory obligations but also prejudices employees by depriving them of their social security benefits, which they are entitled to upon retirement, death, or exit from the scheme. The Defendant, despite being duly notified and given multiple opportunities to comply, failed to remit the required contributions. The 4 documentary evidence tendered by the Plaintiffs is uncontroverted and supports the claim in full. Consequently, the court finds that the Plaintiffs have successfully proved their claims on a balance of probabilities. The Defendant, EDEN SCHOOLS LIMITED, is hereby ordered to pay the Plaintiff, THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURITY FUND, the sum of TZS 64,260,000/= being the outstanding members’ contributions for the period of February 2016 to December 2023. The Defendant shall also pay interest on the decretal sum at the court rate of 7% per annum from the date of judgment until full satisfaction of the amount and bear the costs of this suit. It is so ordered. K.N. ROBERT JUDGE 28.3.2025 5