DA Limpopo lays charges over GNT pension and medical fund scandal
POLOKWANE – DA provincial spokesperson for Economic Development, Environment and Tourism, Jacques Smalle presented himself at the Polokwane Police Station on Monday morning to lay a criminal complaint against the board and executive management of Great North Transport (GNT) for the non-payment of employee pension fund and medical aid contributions.
According to Smalle, the board and executive management of the Limpopo Economic Development Agency (Leda) will also be enjoined in this complaint.
You might also want to read: Plans underway to resolve GNT pension fund debacle
'As the sole shareholder of GNT, Leda bears statutory and fiduciary oversight responsibilities for GNT's operations and financial conduct. They too must be held accountable and face consequence management,' Smalle explained.
According to Smalle, the shocking extent of this crisis was laid bare during an urgent meeting of Limpopo's Portfolio Committee on Economic Development, Environment and Tourism, convened last Friday evening, following the DA's sustained calls for GNT and Leda to appear before the committee to explain and account.
It became apparent at the meeting that unpaid contributions to three pension schemes now total R6.78m, affecting 945 employees.
In some cases, employee membership has already been suspended.
If a partial payment of R1m is not made by the end of May, all employee memberships will be suspended. If the default continues, employees' risk permanently losing their pension benefits.
Regarding medical aid contributions, total unpaid premiums amount to R3.21m, affecting 247 employees.
You might also want to read: Unpaid provident fund sparks protest by Great North Transport employees
All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket.
'While undertakings were made at the portfolio committee, and while MEC Tshitereke Matibe indicated that he wished to address the crisis privately and in confidence to the committee, this never materialised. A subsequent statement issued by MEC Matibe, in which he apologised to GNT employees and set out certain actions including placing GNT under administration, was later withdrawn. It is within this context that our criminal complaint to SAPS will be lodged,' Smalle explained.
'We urgently need resolution to the plight facing GNT's employees, and we need to see real accountability and consequence management. If we don't clean out GNT, no turnaround will succeed,' Smalle reckoned.
'In our complaint to the police we call on law enforcement to investigate the conduct of GNT and Leda officials and their board members for theft, fraud, contraventions of the Pension Funds Act and contraventions of the Medical Schemes Act, all of which constitute criminal offences,' Smalle concluded.
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