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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!
