Probe into missing R46-million provident fund payout to Council employees underway

Buzwa told Kathorus Mail he believes the latest information submitted by several other former municipal employees of the now-defunct Katlehong Town Council, which was disbanded in 1993, will assist the police in their investigations.

He explained the information submitted by some of the ex-employees has assisted investigators to build a clearer picture of how large amounts of the workers’ provident funds were siphoned out of the municipality’s coffers and then diverted into personal bank accounts.

“I am hoping this will spur the police into speeding up their investigations as it appears the entire process was hijacked and manipulated by people who had no right to that money,” lamented Buzwa.

The PI confirmed that in his 10-year probe into the 27-year-old case, he believes his latest findings could be the crucial link police need to step up their investigation.

He explained the latest evidence will also reveal how large amounts of the missing funds ended up in the personal bank accounts of municipal administrators who were in charge of finance and administration at the old municipality.

According to the PI, the same high-ranking officials were also in charge of negotiating the retrenchment deal for the employees.

“These officials sat around the same table with senior municipal management, workers’ representatives, labour officials and union representatives to negotiate an amicable settlement for all 366 retrenched employees.”

A former senior official in the defunct Katlehong Town Council admitted to Kathorus Mail, before his death, that something went drastically wrong after the 1993 retrenchment package deal was discussed and finalised.

Buzwa pointed out that part of the missing money was later used to enrich those who he claims were supposed to make sure it was paid out to its rightful owners.

“What is sad about this theft of workers’ benefits is that people who had worked hard for their money never got to see it. Instead, it went to feed and raise children of greedy officials who took advantage of the workers’ ignorance,” Buzwa explained, adding a large percentage of the beneficiaries have since died.

“It is now mainly the children of these former employees and their grandchildren who have taken up the battle to recover what rightfully belongs to their grandparents. That is why it was important for me to gather all the relevant information and hand it over to the police for further investigation,” Buzwa explained.

Col PJ Botha of the Katlehong North SAPS confirmed the case has been assigned to Det Sgt Neuker for investigation.