SIU to withhold fired CEO’s pension until damages claim against her is finalised

The Special Investigating Unit (SIU) and National Health Laboratory Service (NHLS) have secured an order from the Gauteng High Court in Pretoria allowing it to not pay out any pension benefits to its former CEO, Joyce Mogale.

The order was granted on 5 March and directed the pension fund and its administrators to not pay out funds that might be due to her, pending the finalisation of a damages claim against her.

According to SIU spokesperson Kaizer Kganyago, on or about 19 August last year, a damages claim was instituted against Mogale and another former official of the NHLS in the Johannesburg Labour Court for about R236 million.

“The NHLS instituted disciplinary proceedings against Mogale for her alleged involvement or role in the irregular appointment of and contracting with a number of service providers of the NHLS.

“At the conclusion of the disciplinary proceedings, Mogale was dismissed with effect from 2 May 2019.

“On or about 3 July 2019, the SIU and the NHLS brought an application in the North Gauteng High Court in Pretoria in which the SIU and the NHLS sought an order to direct the Alexander Forbes Retirement Fund and Alexander Forbes Life Limited not to pay out to Mogale any pension benefits that were due to her, pending the institution and finalisation of a damages claim that would be instituted against her.

“In terms of Section 37D of the Pension Funds Act, a pension fund is empowered to deduct any amount that a member owes to his/her employer in respect of ‘compensation … in respect of any damage caused to the employer by reason of any theft, dishonesty, fraud or misconduct by the member’,” Kganyago said.

Mogale and chief financial officer Sikhumbuzo Zulu were fired in May last year, following “procurement irregularities” worth R200 million, News24 reported.

Mogale and Zulu were first suspended in February 2017.

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