CHDM investigates officials over alleged pension fund irregularities

Chris Hani District Municipality (CHDM) says it is investigating two senior officials who allegedly defrauded the municipal pension fund, in a scandal that appears to mirror the R13-million pension payout saga that has already led to dismissals at Enoch Mgijima Local Municipality.

The investigation was triggered by a week-long Komani News probe into alleged irregular conduct by officials at both CHDM and Enoch Mgijima.

According to information obtained by Komani News, one of the two CHDM employees at the centre of the allegations claimed her pension while moving from being a manager to a director — while still employed by the district municipality.

The second official also claimed her pension while still employed by the municipality. She resigned for a month, returned the following month, and has since been promoted to manager. She remains at work.

Sources inside CHDM say no action has been taken against either official to date. Komani News is in possession of voice recordings of municipal employees questioning the conduct of the two.

When approached for comment, CHDM spokesperson Nangamso Ngceke said: “The District Municipality has just received the enquiry and will investigate the matter. A statement will be issued once the necessary processes have been concluded.”

The revelation comes just days after Enoch Mgijima Local Municipality confirmed it had dismissed two employees implicated in a pension payout scandal that has allegedly cost the municipality at least R13-million.

In a statement on Friday, 21 August, Enoch Mgijima confirmed the dismissals followed a disciplinary process linked to alleged irregular pension fund withdrawals.

While Enoch Mgijima has acted, questions are now mounting over whether Chris Hani District — which provides bulk services to Enoch Mgijima and other local municipalities — has turned a blind eye to a similar modus operandi within its own ranks.

Pension fund rules are clear: an employee cannot claim a withdrawal benefit while remaining in the employ of the same municipality without a genuine break in service. A resignation for one month followed by re-employment is flagged by funds as a classic red flag for fraud.

Neither of the two CHDM officials has been named, as they have not yet been charged.

The story is ongoing.