10 Dec 2010

Cook Islands businesses prosecuted for non-payment into super fund

6:45 am on 10 December 2010

Several businesses in the Cook Islands are being prosecuted for not making employee contributions into the national superannuation fund.

The chairperson of the fund's board says it's taking about six businesses to court and more will follow.

John Kenning says he doesn't accept that the fund's poorly managed but criticism of the level of annual fees paid to the fund's managers is justified.

He says the board's engaged new managers and achieved a reduction in costs.

"The fact of the matter is that there is a law in place which says that it is compulsory to contribute to the fund. And until that law is found to be unenforceable that law's in place so people need to contribute."

John Kenning says one business, Aorangi Timberland, is challenging the constitutionality of the superannuation fund act.