A criminal case has been opened after funds that were deducted from employees at Magareng Municipality were apparently never paid over to third parties including medical aid funds, provident funds, the Unemployment Insurance Fund and funeral policies.
A CRIMINAL case has been opened after funds that were deducted from employees at Magareng Municipality were apparently never paid over to third parties including medical aid funds, provident funds, the Unemployment Insurance Fund and funeral policies.
Workers noticed that third-party payments had not been paid for more than four months.
Northern Cape police spokesperson Lieutenant-Colonel Sergio Kock said the Warrenton police are investigating a case of fraud after the South African Municipal Workers Union (Samwu) opened a criminal case against the municipality.
“No arrests have been made and the investigation continues.”
Samwu’s provincial secretary, Lawrence Fennie, pointed out that the benefits of members lapsed if their medical aid payments were outstanding for more than three months.
“According to information, deductions have not been paid for around six months. Some of our members passed away and their bereaved families were not able to claim for funeral cover and had to pay for the burials out of their own pockets.”
Meanwhile, the HOD of the Department of Public Works, Dr Johnny MacKay, who is facing 271 charges of contravening the Pension Funds Act involving an amount of R9 million, is still reporting for duty.
MacKay allegedly failed to pay over deductions from employees to the retirement fund between September 2021 and March 2022 while he was the acting municipal manager of the Kai! Garib Municipality.
He was arrested by the Hawks’ Serious Commercial Crime Investigation unit in October last year and is expected to reappear in court next week.
The head of the legal unit of the Northern Cape Civics Organisation, Ross Henderson, said MacKay was facing serious charges.
“The case was postponed until January 26. While the provincial government preaches about clean and effective governance, what is done in practice is exactly the opposite,” said Henderson.
“He was never suspended, while the former acting head of the Department of Health, Dr Dion Theys, and other government officials were suspended as soon as they appeared in court.”
He questioned how MacKay could be appointed as HOD when it was “common knowledge” that he was facing serious criminal charges.
“It appears as if provincial government is hell-bent on setting dubious precedents. Or is it a case of protecting people who follow unlawful instructions and dubious mandates? How on earth can they justify the selective suspension of certain officials?
“According to the ANC’s step-aside policy, officials should immediately step down if they are facing criminal charges.”
The Department of Roads and Public Works had not provided a response to media enquiries by the time of going to publication.
