Thursday, 28 June 2012 18:00

BIBC to liquidate rogue building contractors

The Building Industry Bargaining Council has announced its intention to take legal action against a number of non-compliant building contractors, to ensure that employees are protected. Although applying for liquidation is the last resort, the BIBC is very clear that they will begin proceedings against such contractors, as no further alternatives are available. "The ultimate goal is to ensure that employees receive the benefits lawfully due to them, so these contractors will be informed in advance of the BIBC's intentions before the actual application is made," said Arnold Williams, Secretary for Building Industry Bargaining Council (Cape of Good Hope).

The BIBC has identified several building contractors that are in arrears with employee benefits, the most important of these being Pension and Provident Fund contributions. And this is a serious offence, since the Financial Services Board holds the BIBC responsible for non-collection of these funds.

Procedure includes:

  • The BIBC employs several methods to ensure that these monies are paid over to the Pension Fund Administrator timeously.
  • In some cases the contractors are blacklisted with all major bureaus, thereby making it impossible for them to apply for credit.
  • Attachment orders are issued, but 80% of the time the Sheriff of the Court issues a 'null-return', indicating that there are no assets to attach.
  • The 'null-return' in itself is grounds for liquidation, and the BIBC will now be applying to have these companies liquidated.