Kopanong municipality owes workers over R100m – Samwu

A multimillion-rand case of fraud against the Kopanong Local Municipality in the Free State, which allegedly defrauded its workers in pension funds and medical aid contributions, is heading to the high court after a Hawks investigation stalled.

The SA Municipal Workers’ Union, which opened the case last year, believe the probe was stalling due to “outside political influence” with the motive of killing the investigation.

Samwu Free State secretary Thabang Tseuoa said yesterday: “The matter is still with the Hawks, it is being investigated by Captain Makgetla and we were informed as far as February that there was an impending arrest of the municipal manager, which to date has not been effected …”

Tseuoa said the prosecutor was reluctant to continue with the case because she needed further particulars from the investigating officer, who failed to provide them to her.

“The inference that we draw out of this is that both the Hawks and the [National Prosecuting Authority] might be reluctant to prosecute because of an outside political influence,” he said.

“Our view is more strengthened by the fact that the municipal manager once alleged that his arrest was imminent but because he knows people in high places he is not in custody.

“We are going to give them a chance and should they decline to prosecute, we intend to go for private prosecution.”

Tseuoa said the money believed to be owed by the municipality was more than the reported R58 million, putting the figure at well over R100 million.

He said the local municipality owed the following:

• Sala Pension Fund is owed R58 million.
• Municipal Workers Retirement Fund owed R15.1 million.
• Free State Pension Fund is owed R646,000 and Free State Provident Fund owed above R700,000.
• Insurance and funeral policies are owed R1.3 million.
• Union subscriptions are owed R1.3 million.

“This is with exception to medical aids, [unemployment insurance fund], Paye and Workman’s Compensation, which they claim they have paid and are up to date, but we have no proof to that effect,” he said.

He said the union had also referred complaints to the Pension Fund Adjudicator and had received some of the determinations which the municipality had failed to abide by.

Hawks’ Brigadier Hangwani Mulaudzi said yesterday that the Serious Commercial Crime Investigation Unit in Bloemfontein was investigating the case.

The Citizen’s many attempts to get comment from the Kopanong Local Municipality failed.

– gcinan@citizen.co.za

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