(AFP Photo)
The Ministry of Social Solidarity has granted tourism companies, hotels, and restaurants a deadline of 6 months to repay their debt to the Social Insurance Fund for Public and Private Sector Workers.
According to a copy of the agreement, the repayment period starts from the end of June to the end of December 2014, and the total indebtedness will be paid over the course of the next five years.
The agreement aims to avoid the administrative seizure of indebted hotels and tourism companies, which were carried out by the Social Insurance Fund for Public and Private Sector Workers during the first quarter of 2014 on certain companies, according to a senior official at the Ministry of Tourism.
According to the agreement, tourist companies and tourist facilities, like restaurants and hotels, are granted certificates of insurance allowing for the temporary management of any facilities used by the company for a period of three months, which could be renewed if companies are able to repay a share of their debts within the specified time limit.
After the deadline passes, the indebtedness and financial situation of each individual company will be examined in the context of its ability to pay its installments within the agreed upon timeline, according to the agreement. All the debts carried by companies and hotel establishments must be repaid within a maximum of five years, and in the case of a legal dispute, each case will be handled separately.
According to the official, “calculations with regard to additional payments will be undertaken in accordance with the provisions of Article 129 of Law 79/57, as amended, and the adoption of the agreement with tourist companies and facilities will continue until those calculations are made.”
According to Vice-Chairman of the Cruise Investors Association Abdul Rahman Anwar, the agreement has not actually been carried out on the ground, and the Ministry of Social Solidarity continues to impose penalties and interest on corporate arrears in the payment of insurance quotas for workers.
