MP seeks parliamentary committee inquiry Into WAMCO pension arrears
According to the MP, the corporation has continued to deduct pension contributions from employees' salaries despite the absence of deposits.
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A request has been submitted to the People's Majlis State-Owned Enterprises (SOE) Committee seeking an investigation into the failure of the Waste Management Corporation (WAMCO) to deposit pension contributions deducted from employees' salaries.
The matter was raised by Galolhu North MP Mohamed Ibrahim, who asked the committee to examine why pension contributions withheld from employees have not been credited to the Maldives Pension Scheme for the past 19 months.
In a letter addressed to Speaker of Parliament Abdul Raheem Abdulla, Mohamed Ibrahim cited figures from the Maldives Pension Administration Office showing that WAMCO last deposited employee pension contributions on 16 October 2024.
According to the MP, the corporation has continued to deduct pension contributions from employees' salaries despite the absence of deposits to the pension scheme.
The submission referred to a statement issued by WAMCO in January, in which the corporation said it relies on revenue, government assistance and subsidies to meet salary and benefit obligations. WAMCO had stated that it was facing difficulties in making pension payments because the Malé City Council had not settled an outstanding payment of MVR 98 million owed to the company.
Mohamed Ibrahim argued that financial challenges do not remove an employer's legal responsibility to make pension contributions.
In his letter, the MP stated that the right to a pension is protected under the Constitution and that regular pension contributions are required under the Pension Act.
He further noted that delays in depositing pension contributions affect employees by reducing the investment returns generated through the pension fund and limiting their ability to use pension savings as collateral for housing loans.
The MP said the issue affects hundreds of WAMCO employees and raises concerns regarding compliance with statutory obligations by state-owned enterprises.
He requested that the SOE Committee conduct a review of the matter, summon senior officials from both WAMCO and the Pension Office, and require WAMCO to submit a plan outlining how it intends to settle the outstanding pension contributions.
The committee has not yet announced whether it will take up the matter for formal review.
