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COSATU names and shames employers who default on workers’ pension fund payments

The Congress of South African Trade Unions (COSATU) is deeply disturbed by the massive increase in the number of employers who are reported to be defaulting on paying workers’ pension fund contributions, and as a result has decided to name and shame them.

In November last year, the Financial Sector Conduct Authority (FSCA) released a list of 7 700 employers who were in arears for pension fund contributions, even though they had deducted these monies from employees’ salaries. COSATU is outraged because the list of companies has virtually doubled from the 4 000 released by the FSCA in 2023.

Disappointingly, many municipalities were among the key culprits along with security and cleaning companies. Municipalities are notorious for not paying workers’ salaries, now we know they also do not pay pension funds contributions. Security and cleaning workers are among the most vulnerable and it is sacrilege that their employers see nothing wrong with withholding contributions that if they were paid timeously, would prevent them from retiring in poverty.

Most distressing, however, is some of these companies have been awarded lucrative government tenders and yet they shamelessly are seen to be flouting the laws of the country. Among the many defaulters it has been alleged is Mafoko Security, which reportedly provides security to various government sites including OR Tambo International Airport, Prasa offices in Tshwane, the Gauteng Legislature, the entire Midvaal and Johannesburg City municipal offices. As of November 2024, Mafoko Security was said to have been 68 months in arears with the Private Security Sector Provident Fund (PSSPF).

Another culprit, Eagle Eye Security, has sites at the OR Tambo International Airport and provides security to Prasa in Ekurhuleni. Eagle Eye was reported to have been in arears for 57 months with the PSSPF in November 2024.

Long-standing defaulter, Tshedza Security, was reportedly in arrears with the PSSPF for 132 months in November 2024.

COSATU is committed to ensuring that employers who are in contravention of Section 13A of the Pension Funds Act, which stipulates how contributions to retirement funds should be paid, settle arrears and become compliant going forward. In addition to naming and shaming delinquent employers, COSATU will partner with the FSCA and the Department of Employment and Labour to ensure compliance. The Federation will also lobby government to bar defaulting companies from being awarded tenders.

Issued by COSATU

Zanele Sabela (COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za