DA to lodge criminal charges against municipal officials responsible for holding back pension fund transfers

11 December 2020

Note to Editors: Please find attached soundbite by Cilliers Brink MP.

The Democratic Alliance (DA) will be lodging criminal complaints against municipal officials in various provinces who have failed to pay over employee pension fund contributions.

Replying to a question by DA MP Samantha Graham this week the Finance Minister revealed that at least 23 municipalities are currently in default of pension fund transfers (answer and accompanying spreadsheet attached).

As a result, about 1 600 municipal employees’ pensions have lapsed, and 64 employees are unable to retire because they are precluded from accessing retirement funds.

Hundreds of millions in interest has also accrued on these outstanding pension transfers – effectively for the account of residents and ratepayers.

In terms of section 13A of the Pension Fund Act it is a criminal offence for employers to deduct pension contributions from the salaries of employees and fail to pay these amounts to pension funds.

The financial mismanagement of municipalities has dire consequences for municipal workers and residents, and those responsible must be held to account.

Issued by Cilliers Brink, DA Shadow Deputy Minister of Cooperative Governance and Traditional Affairs, 11 December 2020