The Democratic Alliance (DA) today picketed outside the Upington Magistrates Court in protest of pension crimes.
The picket coincided with the pre-trial conference by the Specialised Commercial Crimes Court in Upington, in respect of the case against former Municipal Manager of Kai !Garib, Johnny Mackay, who stands accused of contravening the Pension Funds Act. Mackay is currently also the Head of the Northern Cape Department of Roads and Public works.
It is alleged by the Hawks that between September 2021 and March 2022, the accused failed to ensure that contributions deducted from Kai !Garib municipal employees were paid to the consolidated Retirement Fund for Local Government. Total prejudice to the fund is said to exceed R9-million.
Pension crimes committed by local government are an absolute afront to municipal employees, who have dedicated years to the service of their employer. It is cruel and careless to toy with employees’ life savings, by failing to secure their pensions, meant to carry them through their retirement.
In as far back as 2017, the DA laid a criminal charge (case number: 0097/ 11/2017) against Kai !Garib municipality, after it came to light that the municipality was failing to pay over the necessary contributions to third parties, for employees’ tax, UIF, policies and pension funds. In 2020, the DA further reported our concerns to the Office of the Public Protector after promises, made since 2018, that the municipality would rectify the fault, never materialised.
The DA is relieved that pension crimes are finally under the spotlight and that the wheels of justice, for those who were cruelly robbed of their lifesavings, are slowly turning.
There are a number of other municipalities in the Northern Cape that have reported arrears in their monthly statutory contributions to pension funds, and we will be dealing with them on a case-by-case basis and laying criminal charges wherever necessary. This is crucially important, given that Finance Minister Enoch Godongwana revealed in a parliamentary reply in July this year that none of the defaulting municipalities have compensated any municipal officials or councillors impacted by the non-payment of monthly contributions to pension and medical aid funds.
It is time that municipal officials that steal pensions must be held accountable and pay back the money. This case must also serve as a deterrent for recurrences of pension fund crimes elsewhere in the province.