top of page

President Ramaphosa demands accountability after former Limpopo Premier Mathabatha & his administration failed to trace R300 million missing GNT pension funds

Mpho Dube

ANC Limpopo outgoing Chairperson and former Premier Stan Mathabatha.


Former Limpopo Premier Stan Mathabatha and his administration failed to resolve the fiasco in relation to more than R300 million missing pension funds which affected about 800 current and former employees of a Limpopo government-owned bus company Great North Transport (GNT).


This prompted President Cyril Ramaphosa to sign a proclamation authorising the Special Investigating Unit (SIU) to investigate the GNT for alleged corruption and maladministration.


Employees of the GNT have been left out of pocket after R300 million of their pension funds vanished despite them paying their contributions to the pension fund or had been paying short for 17 years. Reportedly, the GNT board of trustees held quarterly meetings between 2000 and 2017 however failed to report any non-compliance by the bus company to the pension fund registrar in accordance with the Pension Funds Act, according to a forensic report by BDO, an auditing firm. The board was required by law to report prejudicial matters and conduct relating to the members’ benefits but did not.


SIU spokesperson Kaizer Kganyago said in a statement that the proclamation 246 of 2025 authorises the SIU to investigate allegations of corruption in eight contracts and maladministration in six contracts at the Greater North Transport (GNT) in Limpopo Province.


Kganyago confirmed that the SIU will investigate the allegations of corruption of board members, officials or employees of the GNT or contractors, suppliers or service providers for the following tenders; appointment of Raletjena Technologies and Trading (Pty) Ltd,  extension of a contract between the GNT and Group 4 Security (Fidelity Cash Management) (Pty) Ltd,  appointment of Scania South Africa (Pty) Ltd to provide repair and maintenance services to the GNT,  procurement of 150 busses from Mercedes Benz South Africa (Pty) Ltd,  procurement of 87 80-seater busses from MAN Truck and Bus South Africa (Pty) Ltd,  appointment of BB Truck and Tractor Services (Pty) Ltd to provide repair and maintenance services to the GNT,  procurement of legal services  and  procurement of a fleet management system.


Furthermore, the SIU will also probe allegations of maladministration in the affairs of the GNT and any losses or prejudice suffered by the GNT or the State as a result of such maladministration concerning; fruitless and wasteful expenditure incurred by the GNT as a result of interest payments made to Africa Oil (Pty) Ltd;  a settlement agreement concluded with Umvuzo Energy (Pty) Ltd,  the mismanagement of diesel supplies; the failure to collect the debt that was due and owing to the GNT and an agreement was entered into between the GNT and emerging bus operators.


Kganyago said: “The probe will also examine whether the payments for these contracts adhered to national treasury guidelines and ascertain whether the payments were irregular, fruitless, and wasteful expenditures or financial losses for the department or the state. Furthermore, the SIU will seek to establish if there was unlawful or improper conduct by the department employees, officials, agents, and any other person or entity to corruptly or unduly benefit themselves or others.

“The investigation will also determine whether fraudulent conduct occurred, including the causes of such maladministration, any losses, damages, or prejudice actually or potentially suffered by the department or the State, and any irregular, improper, or unlawful conduct by employees or officials of the department or any other person or entity.”

He added: “The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 January 2002 and 31 January 2025, as well as any related activities before 1 January 2002 and after the date of the Proclamation that are pertinent to the matters under investigation or involve the same persons, entities, or contracts. Beyond investigating maladministration, corruption, and fraud, the SIU is committed to identifying systemic failures and recommending measures to prevent future losses.”


Kganyango in conclusion said: “In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action. Under the SIU Act, the SIU is also authorised to initiate a civil action in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation resulting from acts of corruption, fraud, or maladministration.”


Provincial government spokesperson Ndavhe Ramakuela said: “The provincial government welcomes the investigations that are going to continue because of the proclamation we have noted it that work must be done by various agencies particularly the SIU, we have asked all the people in the entity that are involved to and those in the department to cooperate with the law enforcement agencies.”


Comments


bottom of page