SIU moves to freeze pension benefits of ex-water department official
As part of the lawsuit, the SIU is taking action against Mathe, Department of Water and Sanitation's CFO Mpho Joseph Mofokeng, Ascul Construction CC, and its director Dan Lucas Sikhosana.
Picture: iStock
In a significant legal move against alleged corruption, the Special Investigating Unit (SIU) has recently revealed it has secured a court order to interdict the pension benefits of Zandile Yvone Mathe, former deputy director-general of the Department of Water and Sanitation.
According to the unit, on 13 January, the Special Tribunal granted the SIU authority to prohibit Mathe from withdrawing or diminishing funds held in her Government Employees Pension Fund (GEPF) and Government Pensions Administration Agency (GPAA) accounts.
“The SIU approached the Special Tribunal to interdict pension benefits after Mathe was dismissed following disciplinary proceedings based on SIU referral and took steps to claim her pension benefits.”
The SIU said the order is a result of the implementation of its investigation findings and consequence management.
It is aimed at recovering financial losses incurred by the state due to corruption, mismanagement, or neglect.
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Background of the pension benefits freeze investigation
The SIU noted that the investigation originated from “a Proclamation issued by the President of the Republic of South Africa, specifically Proclamation No. R. 54 of 2012” concerning contract W0497 for a water pipeline construction in the Vuwani area of Limpopo.
The Special Investigating Unit (SIU) has filed a lawsuit in the High Court of South Africa against Department of Human Settlements Director-General Mbulelo Tshangana’s wife, Nomathemba Mathe, and others, following a comprehensive investigation.
As part of the lawsuit, the SIU is taking action against Mathe, the Department of Water and Sanitation’s chief financial officer, Mpho Joseph Mofokeng, Ascul Construction CC, and its director, Dan Lucas Sikhosana.
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Legal claims and financial implications
The SIU is pursuing a complex legal action seeking the cancellation of contracts valued at R170,335,859.60, citing significant alleged “procurement and other irregularities”.
“Additionally, it claims damages amounting to approximately R55,676,184.39,” the unit stated.
The SIU announced that it intends to hold both Mathe and the Department’s chief financial officer, alongside the contractor, accountable for their alleged misconduct, regulatory violations, and negligence in performing their official responsibilities.
This action is based on their involvement in maladministration and statutory violations.
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Regulatory violations and ongoing litigation
The legal challenge contends that the defendants violated multiple regulatory frameworks, including the Public Finance Management Act, Treasury Regulations, Department Supply Chain Management Policy, and the Construction Industry Development Board Act.
“The main claim is currently being defended, and the litigation is ongoing.”
As part of the court order, GEPF and GPAA must assess Mathe’s pension benefit value within 60 days and report whether the claimed amount exceeds the SIU’s legal claim.
The SIU has emphasised its authority to pursue further civil action through the High Court or Special Tribunal to address potential misconduct and lawbreaking.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any uncovered evidence of criminal conduct to the National Prosecuting Authority (NPA) for potential prosecution.
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