Two Enoch Mgijima employees fired over R13m pension scandal

Enoch Mgijima Local Municipality has dismissed two employees implicated in a pension payout scandal that has allegedly cost the municipality at least R13 million.

The municipality confirmed on Friday, 21 August, that the two employees were dismissed following a disciplinary process linked to alleged irregular pension fund withdrawals.

The dismissals form part of a wider investigation involving nine municipal employees who were previously suspended over the matter.

According to the municipality, seven of the nine employees allegedly obtained pension payouts, while the two employees who have now been dismissed were implicated in facilitating the irregular withdrawals.

A criminal case has also been opened with the South African Police Service.

At least R13 million in losses

The municipality said its preliminary assessment has placed the losses arising from the alleged scheme at no less than R13 million.

The alleged irregularities took place during the 2022/23 and 2023/24 financial years.

According to the municipality, employees allegedly submitted pension claims on the basis that they had resigned from their positions.

However, the municipality said no resignation notifications relating to the employees were received by the Municipal Manager.

After allegedly receiving their pension payouts, the employees changed their pension funds.

“In the 2022/23 and 2023/24 financial years, these municipal employees allegedly made claims under the guise that they had resigned from the municipality,” Enoch Mgijima Local Municipality said.

“After receiving their payouts, they changed their pension funds. No resignation notifications were received by the Municipal Manager.”

More disciplinary hearings expected

The matter is not over following Friday’s two dismissals.

The municipality said disciplinary hearings involving the remaining employees implicated in the matter are scheduled to take place between August and September.

The criminal investigation is also continuing.

Enoch Mgijima Local Municipality said it would continue investigating allegations of fraud and corruption and take action where wrongdoing is established.

“The matter remains under investigation, and the municipality would like to assure the public that all fraud and corruption by any individual will be investigated and that decisive action will always be taken,” the municipality said.

The municipality has not identified the dismissed employees in its statement or provided further details regarding the criminal case.