SSNIT takes legal action against Railways MD for nonpayment of contributions

The Social Security and National Insurance Trust (SSNIT) office in Takoradi has taken legal action against the Ghana Railways Corporation (GRC) and its Managing Director, Michael Adjei Anyetei, for failing to pay social security contributions for the entity’s workers, amounting to GH¢4.13 million.

The Circuit Court, presided over by Araba Nunoo, issued a warrant for the arrest of the managing director following an application by SSNIT Prosecutor Ann-Marie Annan for a bench warrant.

The prosecution explained that between December 2022 and April 2024, the company neglected to pay the social security contributions of its staff at the Takoradi office, which is an offence under the National Pensions Act, 2008 (ACT 766).

“Failing to pay social security contributions contrary to Section 83 (1)(d)(h) of the National Pensions Act, 2008 (ACT 766) as amended by Section 7 of the National Pensions (Amendment) ACT 2014 (ACT 883) is an offence,” the prosecution stated

Ms. Annan emphasized that failing to pay social security contributions contravenes Section 83 (1)(d)(h) of the National Pensions Act, 2008 (ACT 766), as amended by Section 7 of the National Pensions (Amendment) Act 2014 (ACT 883).

The managing director of the Ghana Railways Corporation and the entity, headquartered at Takoradi Harbour, failed to comply with this legal requirement. An inspection conducted by SSNIT officers on the company’s establishment revealed that, as of April 2024, the contributions had not been paid.

SSNIT served demand letters on both the managing director and the company, requesting a meeting to discuss terms of settlement of their indebtedness, but they failed to respond. Efforts by SSNIT officers to engage with the management of the corporation and recover part of the debt, including visits to the company’s premises, were unsuccessful.

“Officers of the Trust subsequently visited the premises of the Ghana Railways Corporation on two occasions in an attempt to engage the management of the corporation and also retrieve a part of their indebtedness,” she told the court.

As a result of the persistent refusal to settle the debt or appear in court, a criminal summons was issued against the first and second accused. Their failure to respond led to the application and issuance of a bench warrant for the arrest of the managing director. The case has been adjourned to July 8 this year.