The Congress of South African Trade Unions (COSATU) welcomes the suspension of top executives at Great North Transport following allegations of mismanagement.

Great North Transport (GNT) is a Limpopo government-owned bus company. The Limpopo Economic Development Agency, which oversees GNT, ordered the three-month precautionary suspension of the CEO Dr. Matata Mokoele, CFO Nazeem Essa and COO Mahlako Mogoshoane. The trio are accused of not paying over workers’ medical aid and pension fund contributions to third parties for six months even though these amounts were deducted from employees’ salaries. The outstanding contributions amount to nearly R10 million, leaving hundreds of workers without benefits.  

This is not the first time GNT has defaulted on third party payments. In 2022, R300 million in workers’ pension fund contributions was reported to have vanished, leaving workers unable to claim their rightful benefits, even though some were due to receive their retirement benefits. The company was accused of having used the money to operate the business as it was cash strapped.

This is a worrying trend that appears to be worsening. According to a list released by the Financial Sector Conduct Authority (FSCA) in late 2024, the number of employers defaulting on paying workers pension fund contributions to the relevant funds has doubled from 4 000 to 7 700 since prior publication a year earlier. Not to paying over contributions to third parties contravenes the Pension Fund Act is punishable by fines of up to R10 million or 10 years in prison.

It is critical that workers raise the alarm and notify their unions when they suspect their employers of defaulting on payments because the sooner, they speak up, the quicker the situation can be remedied.

Issued by COSATU

Zanele Sabela (COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639

Email: zaneles@cosatu.org.za