Latest news with #GreatNorthTransport
The Citizen
3 days ago
- Business
- The Citizen
Three GNT execs suspended
On Tuesday, the financially bleeding company was forced to pay R9 million of the missing money. Widows of former Great North Transport employees join affected former and current employees to picket outside of the Office of the Limpopo Premier in demand of the implementation of recommendations made in an investigation regarding the whereabouts of lost pension funds. Picture: Supplied Limpopo Great North Transport (GNT) has placed its chief executive officer (CEO), Dr Matata Mokoele, chief operations officer (COO), Ms Mahlako Mogoshoane, and chief finance officer (CFO), Nazeem Essa, on precautionary suspension. The organisation is a subsidiary of the Limpopo Department of Economic Development, Environment and Tourism (LEDET). The trio were suspended on Tuesday following allegations of financial misconduct amounting to R9 million. It is alleged that medical aid and pension funds belonging to more than 280 employees have not been paid for a considerable number of years. On Tuesday, the financially bleeding company was forced to pay R9 million of the missing money. The agency confirmed on Friday that the trio had been suspended with pay, pending the outcome of internal investigations. 'This resolution was taken in response to serious concerns related to financial governance, operational delivery, and executive accountability. 'The suspensions are effective immediately and will remain in place for a period not exceeding three (3) months,' said the company. During this period, the Board said it will be engaging the shareholder, the Limpopo Economic Development Agency (LEDA), to provide strategic and operational support, including the secondment of interim leadership resources to ensure the continued delivery of essential public transport services. 'We appeal for cooperation and support from all stakeholders during this transitional period and will provide further updates as necessary,' said the board. ANC Youth League welcome decision The ANC Youth League in Limpopo commended the company for its action. Provincial secretary Phineas Sebola said the lack of pension payments has had a profound impact on retired and current employees, particularly those reliant on pensions for income. ALSO READ: Unpaid provident fund sparks protest by Great North Transport employees Some employees, he said, had unfortunately passed away before receiving their money they were owed. Sebola added that the company has a responsibility to rectify logistical issues in Limpopo and provide affordable transportation services. 'This viable transport mode for our people has been disconnected from the communities due to financial mismanagement. 'As the ANCYL, we view this as an opportunity for our parents, brothers, and sisters who worked for the company for years to receive justice and ultimately obtain what is due to them. 'In addition, the ANCYL advocates for the review of the board and urges the departments responsible to consider dissolving the board and bringing a new structure dominated by young people to bring life in GNT. 'It is in our view that the board has not been doing its work efficiently. Instead, it is now shifting the problem to senior executives. 'We believe that older members may be experiencing diminishing returns in terms of their capacity, leading to ineffective governance of our institutions or companies. 'The inclusion of young people will bring fresh perspectives and energetic engagement to the table, offsetting potential fatigue among older members and facilitating the efficient operation of the company,' Sebola explained. DA lay charges On Monday the DA, the third biggest political party in Limpopo after the EFF and the ANC, laid criminal charged at the Polokwane police station against LEDET and LEDA. This followed years of complaints over unpaid pension fund and medical aid payments to GNT employees. 'The board and executive management of LEDA, as the sole shareholder of GNT, bear statutory and fiduciary oversight responsibilities for GNT's operations and financial conduct. They, too, must be held accountable and face consequences. 'Unpaid contributions for pension fund schemes now total R6.78 million, affecting 945 employees. In some cases, employee membership has already been suspended. 'If a partial payment of R1 million 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. 'Medical unpaid contributions totalled R3.21 million, affecting 247 employees. All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket,' said Jacques Smalle, Member of the Provincial Legislature in Lebowakgomo. On Friday, LEDA told The Citizen that it has settled the bill and paid an amount of R9 million towards the employees' pension fund and medical aid contributions. NOW READ: R15m in road unworthiness fines for Great North Transport
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.
