Investors and employers whose KiwiSaver contributions are in limbo have questioned the integrity of the Inland Revenue Department.
The Herald received an overwhelming response to yesterday's story which reported the IRD's delays in processing contributions.
Respondents said they had paid thousands of dollars to the scheme but their
accounts remained empty.
Some employers are chasing records of payments made as far back as July 2007.
Their emails used the words "corporate fraud", "unfair" and "useless".
An investor, who was prompted to check his accounts after reading the story, found the last recorded contribution from his salary was in mid-April, which reached his KiwiSaver account in July, and the last record of his employers' contributions was in early April, reaching his account in May, yet both he and his employer have continued fortnightly payments up until present.
"On the IRD website, they say transactions may take up to 90 days to show on the summary - to take double this time is indicative of unbelievably poor process and a likely inadequate staffing level," he said.
Readers accused the IRD of being unfair, as it charges tax payers hefty fines plus interest for late payments.
Investors pointed to the wider implications of the delays, such as being unable to make the most of lower house prices.
"I bought into this to ensure I had some money to put towards a first home deposit. At this rate I'll be renting for several years yet," a reader said.
Ralph Penning, trustee of the Independent Business Foundation, said the hasty introduction of the scheme led to an unbearable workload for the IRD.
The process could be streamlined if employee contributions commenced after the employee had made a firm commitment to the scheme, he said.
Group manager of customer operations Heather Daly said Inland Revenue wished to reassure KiwiSaver members their employee contributions were safe.
"We apologise unreservedly to anyone who is experiencing undue delays. There are many factors, not all of them under Inland Revenue's control, which affect the speed with which KiwiSaver contributions are processed."
Employee contributions would be passed on whether or not they had arrived at Inland Revenue. Employer contributions would be passed on when received and attracted interest from the first of the month they arrive.
