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The Citizen
4 days ago
- Business
- The Citizen
Limpopo DA lays charges over GNT pension crisis
LIMPOPO – On Monday, May 26, the Democratic Alliance (DA) in Limpopo laid criminal charges against the CEO of Great North Transport (GNT) and the Limpopo Economic Development Agency (LEDA), the sole shareholder of GNT. The charges, filed at the Polokwane Police Station, relate to the non-payment of employee pension fund and medical aid contributions. Jacques Smalle, DA Limpopo provincial spokesperson for economic development, environment, and tourism, said LEDA, as the sole shareholder, holds both statutory and fiduciary responsibilities for GNT's financial management. 'The scale of the crisis became clear during an urgent sitting of the Limpopo Portfolio Committee on Economic Development, Environment and Tourism on Friday, May 23,' Smalle explained. 'This meeting, which followed the DA's repeated calls for GNT and LEDA to account, revealed unpaid contributions to three pension schemes totalling R6.78 million and affecting 945 employees. In some cases, employee memberships have already been suspended. If at least R1 million is not paid by the end of May, all memberships could be suspended, potentially resulting in permanent loss of pension benefits.' Smalle attributed the crisis to 'years of corruption, mismanagement, and lack of accountability' at GNT. He added that the company's failure to implement a viable turnaround strategy further deepened its financial troubles. 'The situation at GNT is dire; it has become an unsustainable entity,' Smalle said. 'The charges laid include theft, fraud, and violations of both the Pension Funds Act and the Medical Schemes Act, all of which are criminal offences.' In response to the allegations, Mthunzi Dlamini from LEDA acknowledged the outstanding contributions and said efforts were underway to settle the payments within the week. 'GNT has faced ongoing financial constraints in meeting its obligations,' Dlamini said. 'However, strategic steps have recently been taken, including the procurement of new buses to replace the ageing fleet and the launch of a bus lease programme aimed at increasing operational capacity.' LEDA CEO Thakhani Makhuvha said the LEDA is committed to resolving the issue. 'As the shareholder, LEDA has decided to step in and ensure that all outstanding pension and medical contributions are brought up to date,' Makhuvha said. 'We recognise the severity of the situation and apologise to affected employees. This is deeply regrettable.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
02-06-2025
- Business
- The Citizen
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. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
27-05-2025
- Business
- IOL News
Limpopo agency intervenes in Great North Transport's pension fund scandal
GNT Current and retired employees of Great North Transport during a march regarding the provident fund dispute. Picture: Mashudu Sadike Image: Mashudu Sadike The Limpopo Economic Development Agency (LEDA) has announced plans to fast-track the payment of Great North Transport's (GNT) outstanding pension fund and medical aid contributions. This decision comes after the DA laid criminal charges against GNT's board and management for failing to pay employees' pension and medical aid contributions. According to LEDA Group Chief Executive Officer, Thakhani Makhuvha, the agency will step in to close the gap caused by non-payment of these employee benefits. "We have taken an important decision, as GNT's shareholder, to make the necessary payments and bring all outstanding contributions up to date. We are hopeful this situation will not recur," Makhuvha stated. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The crisis at GNT has left over 945 employees affected, with unpaid pension fund contributions totaling R6.78 million. In some cases, employee membership has been suspended. If the default continues, employees risk permanently losing their pension benefits. Additionally, 247 employees have been affected by unpaid medical aid contributions, totalling R3.21 million, with all medical aid coverage suspended. The scandal affects even workers who have been with GNT since 1990. The company has had nine administrators since 1994, including Alexander Forbes, which administered GNT between 2010 to 2017. Others included Moriting Wealth Managers and Lekana Employee Benefit Solutions. The Limpopo Treasury appointed BDO to probe the matter in 2020 after Make It Happen Foundation (Mihafo), a social and economic justice NGO, complained on behalf of affected employees in 2016. The crisis has had a devastating impact on the affected employees' lives. Patrick Kopane, a 69-year-old retiree, said: "I retired in 2003 and received R40 000 despite serving for a long time… Now I am struggling and have to hustle so I can feed my children." Ravish Thela, who also retired from GNT, added: "They took the money from us, and they failed to take it to the funds. Today I'm suffering, all because of greed. I'm going to die this way without my hard-earned money." The DA's provincial spokesperson for Economic Development, the Environment, and Tourism, Jacques Smalle, said that the crisis was a result of a much deeper rot at GNT, driven by years of corruption, mismanagement, and the absence of oversight or accountability. "All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket. We urgently need a resolution to the plight facing GNT's employees, and we need to see real accountability and consequence management," Smalle said. Makhuvha expressed concern over the non-payment issue and extended an apology to the affected employees, describing the situation as unfortunate and regrettable. "While it is within the DA's right to pursue legal action, we want to assure the public that LEDA has been in continuous engagement with GNT to find a lasting solution to this matter," he said.
Gulf Insider
30-04-2025
- Business
- Gulf Insider
Riyadh Air to Launch Passenger Flights by 2025 End
Riyadh Air is all set to begin commercial passenger flights by the end of 2025, CEO Tony Douglas said, as he shared details on the airline's ambition to surpass regional giants by combining scale with innovation. The airline, introduced in 2023 by Crown Prince Mohammed bin Salman, willconnect Saudi Arabia's capital to 100 cities by the end of the decade as a key part of the Kingdom's Vision 2030. It aims to position Riyadh as a global hub, complementing Jeddah-based as part of a dual-flag carrier strategy, Douglas told Al Arabiya News in an exclusive interview on GNT presented by Tom Burges Watson. 'This is one of those really important moments in the evolution of aviation within the Kingdom of Saudi Arabia,' Douglas said, adding that Riyadh Air aims to become a world class airline. 'In short, the Kingdom's Emirates, the Kingdom's Qatar Airways, but bigger and better,' he said. Riyadh Air's initial fleet includes 72 Boeing 787 Dreamliners, 60 Airbus A320neo and a third wide-body aircraft is to be announced by summer 2025. The aircraft production is underway, the CEO said, increasing confidence in on-time delivery. Douglas on Monday said that Riyadh Air would be ready to purchase Boeing aircraft initially scheduled to be delivered to Chinese airlines if China declines to receive them as part of a standoff with the United States due to rising trade tensions over tariffs. Meanwhile, he also shared that the airline has secured its Air Operator Certificate (AOC), which authorizes commercial air transport operations. Riyadh Air recently unveiled its uniforms, crew, liveries and cabin interiors. With over 1.4 million job applications from 146 nationalities, including pilots, engineers and crew, the air carrier is actively recruiting. It has also launched a Saudi female aviation technician program and plans for a local pilot training academy. Riyadh Air is set to play a central role in Saudi Arabia hosting the FIFA World Cup 2034 and Expo 2030, the CEO said. '(Riyadh) is already a hub for global entertainment, attractions, culture, and heritage across the whole of the kingdom. We will, of course, see the FIFA World Cup in 2034 in Riyadh… it needs a super-connecting, world-class, full-service airline.' Riyadh Air will be a digital airline with no legacy systems, and artificial intelligence set to drive a personalized travel experience like digital concierge offering tailored recommendations and seamless booking and refund process. 'The gift we have above all else is no legacy… we have been able to design the airline for the future — a digital airline for the future,' Douglas said. 'What we are going to use AI for is exactly that — to act like a concierge, curating the optionality, the proposition of an experience.' The airline will offer four cabin classes – first, business elite, premium economy and economy. The aircraft's seats will include a headrest sound system that will allow passengers to listen to any audio without headphones such that the person seating next will not be able to hear the sound. The business elite and business seats will have privacy doors and suits with a canopy design over the top 'symbolic of the Bedouin tent,' when it is pegged at either side, Douglas explained. The privacy suits will also have high definition 4K OLED screens. Also read: First Look: Riyadh Air Unveils Stunning Cabin Design Ahead Of Launch Late 2025
Al Arabiya
03-04-2025
- Business
- Al Arabiya
US imposes sweeping import tariffs: What it means for consumers & global markets
Global economies have awoken to sweeping new US tariffs as the Trump administration unveiled a 10 percent baseline tariff on all imports to the United States on Wednesday and higher duties on some of the country's biggest trading partners, a move that President Donald Trump has called 'declaration of economic independence.' Trump's move has drawn a defiant response from leaders and governments around the world and has left the American consumers wondering how the tariffs would affect their annual household expenditure which according to a Yale study could increase up to $3,000-$4,000 a year. Trump is seeking to create a 'rebalance trade,' according to Mary Jo Jacobi, former assistant secretary of commerce under President Geroge W. Bush, who said that the US has been running 'an incredibly large' trade deficit with countries such as China, Canada and Mexico. Jacobi explained how the tariffs would impact the US consumer and overall global trade. 'Anything imported will cost more to bring into the country and so the consumers will have to pay,' she told Al Arabiya News in an interview on GNT presented by Tom Burges Watson. She added: 'What president [Trump] hopes is that through this hopefully short-term pay of rebalancing, the consumer will get a better deal in the long-term. When you amplify the tariffs approach with the tax cuts that are coming, overall, the consumer will be in a better shape later in the year.' Who will feel the heat most? 'Certainly China,' said Jacobi, adding that the tariffs will have an impact on the price of inexpensive goods manufactured in China, which over the years have declined the manufacturing base of the US as the American consumers rely more on 'cheap imported goods.' China is facing a 34 percent tariff figure and the number stacks on an added 20 percent levy that Trump imposed earlier this year over Beijing's alleged role in the illicit fentanyl supply chain, taking the new additional figure to 54 percent. Trump separately ordered an end to a duty-free exemption for small parcels from China, a move likely to severely disrupt the import of popular low-cost products. The rule has faced heavy scrutiny as US officials pointed to the growth of Chinese-founded online retailers Shein and Temu as a factor behind a surge of shipments using the exemption. Products imported under the 'loophole' from China would be subject to a duty rate of either 30 percent of their value or $25 per item, increasing to $50 per item after June 1. The policy shift kicks in May 2, according to Trump's executive order. What is Trump expecting? According to Jacobi, the US President is expecting that these newly imposed tariffs will bring countries to the negotiating table to seek an overall trade balance. Global leaders were quick to express their dissent after the tariffs were unveiled, threatening to fight the tariffs with countermeasures of their own. The Chinese foreign ministry said it firmly opposed the US tariffs and 'will take countermeasures to safeguard its own rights and interests.' It added: 'There are no winners in trade wars, and there is no way out for protectionism. China urges the US to immediately lift unilateral tariffs and properly resolve differences with its trading partners through dialogue on an equal footing.' Canada also followed suit, saying that 'we are going to fight these tariffs with countermeasures, we are going to protect our workers, and we are going to build the strongest economy in the G7.' Meanwhile Jacobi emphasized that it would really come down to 'who, how much and how long,' before America's global trading partners can work out a prospect that may be beneficial to all parties. 'I think it is safe to say that there will be a lot of paying in the immediate term, hopefully there will be a lot of gain in the medium to long term, from the worldwide trade perspective,' she said. Global recession? If there is a global recession, 'it will boomerang' back to the United States, according to Jacobi. She added: 'It is a very big change and change is frightening, but as we rebalance, it could get better.'
