Numerous employees had claimed their pension contributions had not been properly remitted to the Workers’ Retirement Fund. Despite repeated warnings and attempts to resolve the issue, the municipality failed to act, resulting in protracted legal proceedings.

The municipality’s failure to meet its pension obligations has been a long-standing problem, contributing to widespread frustration among workers, many of whom have seen their pension funds dwindle due to the municipality’s lack of payments.

On Friday (17/1), the court ordered the Frankfort-based local authority to pay R14,723,693.52 from 1 February 2024 to date at the rate(s) prescribed by the Pension Funds Act. Mafube has also been ordered to pay the workers’ legal costs. Apparently, the municipality’s failure to pay workers’ pension contributions, dates back to 2011.

The court order shows that in 2015 it was ordered to pay the arrears in pension contributions of more than R16 million, plus interest. However, in October 2016, Mafube brought forward an application seeking to interdict the fund from executing an unpaid portion of the prior judgment debt. The application was dismissed.

In July 2019, Mafube brought another urgent application against the fund to suspend or set aside an order in writing in response to the prior judgment debt. The application was dismissed, and the fund discovered that despite a pending application to stay the order in writing, the municipality had unlawfully transferred about R40 million out of its bank account despite the ongoing court case and order to freeze it.

In June 2021, the fund initiated an application for unpaid contributions for the period of 2015 to April 2021. The municipality raised serious defences and the application was successful.

In March 2023, Mafube brought yet another urgent application to stay the written execution order concerning prior debt. The application was dismissed. In October 2023, it brought another urgent application which was also dismissed.

In the judgment, the court mentioned that the disappearance of employees’ and members of the fund’s money remains questionable.

Mafube has long been plagued by financial instability. In addition to its pension fund woes, it’s struggled with issues such as unpaid creditors, a lack of service delivery, and allegations of corruption and mismanagement.

Municipal workers have expressed their frustration with the ongoing financial mismanagement, as many have been left uncertain about their retirement security. Some have also raised concerns about the long-term sustainability of their pension funds, given the failure of the municipality to make regular contributions.

OFM News/Kekeletso Mosebetsi cg