RUSAPE Town Council (RTC) is up in arms with the National Social Security Authority (NSSA) Rusape branch, for allegedly failing to pay $35 000, as operating permit fees for the past seven years.
BY CHARLES LAITON
The council has since filed summons at the High Court in Harare challenging NSSA’s demands.
However, NSSA has also hit back and made a counter claim, accusing the council of breaching its obligation of paying employees’ contributions, saying as an employer, the council was in arrears of $114 726.
In its declaration, RTC said it demanded an operating licence from NSSA, for the use of stand 2 Rusape, which the latter began using in 2009 after an agreement for an approved fee of $5 000 per year.
“Defendant (NSSA) is in default of payment of the operating permit fees, as defendant has not been paying the operating permit fees since 2009. The total amount due for operating permit fees from defendant to plaintiff (RTC) is the sum of $35 000, which is now due and payable,” the council said.
In its response to the claim, NSSA said in terms of section 15 of the Prescription Act, a debt such as the one claimed by the council, was extinguished by prescription after the lapse of three years.
“Defendant pleads that any of plaintiff’s claims/fees falling outside the three-year prescriptive period before June 2 2012 have, therefore, been extinguished by prescription and are not claimable,” the social security authority said.
“In the premises, defendant prays for the dismissal of plaintiff’s claim, with costs in so far as they relate to the period before June 2, 2012. For the avoidance of doubt and going by plaintiff’s claim, that would amount to $15 000.”
NSSA further said the amount claimed by RTC was not due, as there was no lawful basis, adding the only issue left for determination was council’s debt to the government’s parastatal.
“The plaintiff, as an employer and in terms of the NSSA Act, was legally liable to pay contributions to the defendant. Despite demand and several promises, plaintiff has failed and or neglected to pay the defendant the aforesaid amount of $114 726,90,” NSSA said praying for an order to be granted in its favour instead.
The matter is still pending in court.