Latest news with #LimpopoEconomicDevelopmentAgency
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.
The Citizen
23-05-2025
- Business
- The Citizen
Fat cats criticised as Limpopo government agency tries to cut 100 jobs
Voluntary separation packages were offered to employees after the Limpopo Economic Development Agency was told it will no longer receive state funding. The Limpopo Economic Development Agency (LEDA), a struggling parastatal under the Limpopo provincial government, has offered employees a voluntary separation package initiative aimed at reducing overhead costs. The move affects nearly 100 employees. Voluntary separation package offered to LEDA employees This week, LEDA's outgoing group CEO Thakhani Makhuvha confirmed the move, stating that the separation package is being offered to employees between the ages of 55 and 64. He emphasised that no employee will be forced to accept the offer. Limpopo lost a staggering 55 000 jobs from the fourth quarter of 2024 to the first quarter of 2025 – that's close to 20% of the jobs lost nationally. This is according to the latest Quarterly Labour Force Survey report for the first quarter of 2025 released by Stats SA. The province's expanded unemployment rate — at an astounding 48.6% — is the third highest in the country. ALSO READ: Outrage over Limpopo council's R3 million Warmbaths conference Responding to The Citizen's inquiry, Makhuvha explained that the decision comes after a directive from the Limpopo legislature. The directive stipulates that so-called '3D' entities in the province — including LEDA and Gateway Airports Authority Limited (GAAL) — will no longer receive state funding and must become self-sustainable by 2030. Makhuvha said the VSP initiative affects approximately 100 employees. 'This is voluntary and employees are not being forced to participate,' he reiterated. Notification was insufficient and abrupt However, this has sparked concern among staff. Several affected employees reportedly received notifications via email and were given only three days to make a decision, which some viewed as insufficient and abrupt. The voluntary separation initiative has been perceived by many as the beginning of a broader retrenchment process. They said LEDA continues to face operational and financial challenges under its current leadership. Recently, employees of one of LEDA's subsidiaries, Limpopo Connexion, were reportedly paid late due to financial constraints. A union representative in LEDA speaking on condition of anonymity described the situation as a crisis requiring urgent intervention from the provincial government. 'We are led by blind men and women, people with no vision for the future of this company and its workers,' the representative said. Union takes aim at high-paid executives The union also criticised the exclusion of executives from the voluntary separation process, claiming that some executives over the age of 55 remain unaffected. Makhuvha clarified that executives are employed on fixed five-year contracts and are therefore not eligible for voluntary separation. 'These are the very people deciding our futures — the same ones who are failing to manage and rescue the agency,' the union member said. ALSO READ: Limpopo mayor advised to make many babies at grand wedding They further alleged that some affected employees were only consulted after receiving the letters through a virtual process led by Makhuvha. 'How do you consult people after the fact?' the member asked. Despite LEDA's financial woes, the agency reportedly continues to hire high-earning executives — some allegedly transferred from provincial government departments without undergoing formal interview processes. According to LEDA's 2023/24 annual report, no executive earns less than R2.5 million per year, with the group CEO earning R4.5 million annually. LEDA and its six subsidiaries have long been under scrutiny, particularly since the merger of four entities — LimDev, LIBSA, Trade Investment Limpopo and Limpopo Agricultural Development Corporation (LADC) — to form the agency. Attempts to get comment from economic development MEC Tshitereke Matibe's office hit a brick wall. Departmental spokesperson Zaid Kala declined to comment, referring all media queries back to LEDA.
