The Democratic Alliance in the Kouga has reported to the Auditor General that the Kouga Municipality (KM) is deducting monthly pension contributions from the employees, but not paying it over to the various pension funds as prescribed in the various financial Acts.
The DA has requested that the Eastern Cape Auditor General Mr Singa Ngqwala investigate and act on the matter. Elza Van Lingen, the leader of the DA in the Kouga said “We have already met with the MEC Mlibo Qoboshiyane and he has confirmed that Kouga is in arrears with the pension/retirement/provident funds in excess of R 6 million.
As it is a legal requirement for the Kouga management to inform the AG of such non payments, we requested Mr Ngqwala to investigate this very serious matter”.
According to the DA there are four pension/retirement/provident funds that are affected:
Cape Joint Retirement Fund
Cape Joint Pension Fund
EC108 Provident Fund
A state pension fund for municipal councillors
The non-payment contraventions have occurred since May 2011 and DA Councillor Rheeder has on several occasions alerted the municipal manager.
The employees of KM are adversely affected because
- The constant late payment causes the size of the investment of each employee to remain smaller than what it is supposed to be
- The lack of payment causes a lack of interest and growth on their investments
- The lack of payment stops their access to risk benefits such as death, funeral disability with immediate effect.
The contraventions of the various financial acts are numerous and severe. Action has to be taken to call the Kouga management and the public representatives to order and hold them accountable.
The DA has also reported to the Auditor General that since his visit to Kouga on 23 April 2012, neither the AG Report nor the Management Report for Kouga Municipality have been tabled at the Kouga Finance Portfolio Committee nor to the Kouga Council meetings.