Latest news with #R6.78
The Citizen
2 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!
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.
