The Congress of South African Trade Unions (COSATU) is dismayed by the allegations of the embezzlement of workers’ contributions at the Municipal Employees Pension Fund (MEPF) following media reports of romantic gestures between the principal officer of the fund and it’s administrator.
The Municipal Employees Pension Fund has been fingered as having paid Akani Properties, which is MEPF’s retirement fund administrator, R333 million to purchase land in 2018. At the time, the principal officer of MEPF, the late Margaret le Grange, was in a secret relationship with the CEO of Akani, Zamani Letjane. The three hectares of land in question is now said to have been developed for the construction of a hotel whose title deed is registered under Akani. The company is also said to have shares in the hotel.
Such disturbing allegations are an abomination and a slap on the wrists of the 30 000 members of this fund. Workers who make monthly contributions to MEPF have entrusted the fund to safeguard their savings. The fund also owes it to its members to apply appropriate and prescribed guidelines to manage the pensions. Instead, the conflict of interest between the fund’ principal officer and the administrator have greatly compromised the integrity of this fund.
Akani should be focused on the administration of the R26 billion in pension assets of municipal employees as the MEPF invests for the retirement benefit of the thousands of members who are employed across 117 municipalities across the country.
By law, a pension fund must appoint an administrator to objectively and independently execute the administration of its affairs for the benefit of its members. This is clearly non-existent in this case.
It is unfortunate that news of this nature comes as workers look forward to accessing their monies through the Two-Pot Retirement System, which was implemented just as few days ago, on the 1st of September 2024.
COSATU calls on the Financial Sector Conduct Authority (FSCA) to conduct investigations into this matter. Drawing from the media reports, the gestures between the love birds are just the tip of the iceberg.
The Federation supports the efforts of its affiliate, the South African Municipal Workers’ Union to ensure the guilty are held accountable and monies are returned to workers.
COSATU has requested an urgent meeting with the FSCA to ensure justice is done here and in other pension funds where criminals are milking workers’ hard earned monies.
Workers blood, sweat and tears cannot be used misappropriately as romantic exchanges.
Issued by COSATU
Zanele Sabela(COSATU National Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zanele@cosatu.org.za