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The National Pension Scheme Authority (NAPSA) has sued Nitrogen Chemicals of Zambia (NCZ) in the Lusaka High Court over K130 million in unpaid penalty arrears.
According to court documents, NAPSA is demanding payment of K129,511,169.32, arising from NCZ’s failure to remit employee pension contributions on time, or at all.
The authority is also seeking interest, damages, and legal costs.
In its statement of claim, NAPSA said NCZ, a state-owned fertilizer producer, is a registered contributing employer under the National Pension Scheme Act No. 40 of 1996.
The law required employers to remit monthly pension contributions for their employees by the end of each month.
NAPSA stated that failure to remit contributions on time attracts a cumulative penalty of 20 percent per month.
However, penalties accruing after December 6, 2023, were reduced to 10 percent under revised regulations.
It was revealed that NCZ’s irregular payment history—some contributions made late and others not at all—resulted in a total penalty debt of K395,793,867.15.
NCZ reportedly applied for a waiver, which NAPSA granted, reducing the balance to K129,511,169.32.
Despite several engagements, NAPSA claims NCZ has failed or refused to settle the outstanding amount, leading to the court action now underway.
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