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On Tuesday, the financially bleeding company was forced to pay R9 million of the missing money.
Widows of former Great North Transport employees join affected former and current employees to picket outside of the Office of the Limpopo Premier in demand of the implementation of recommendations made in an investigation regarding the whereabouts of lost pension funds. Picture: Supplied
Limpopo Great North Transport (GNT) has placed CEO Dr Matata Mokoele, chief operations officer Mahlako Mogoshoane and chief finance officer Nazeem Essa on precautionary suspension.
The organisation is a subsidiary of the Limpopo department of economic development, environment and yourism.
The trio were suspended on Tuesday following allegations of financial misconduct amounting to R9 million. It is alleged that the medical aid and pension funds of more than 280 employees have not been paid for a considerable number of years.
On Tuesday, the financially bleeding company was forced to pay R9 million of the missing money.
The agency confirmed on Friday that the trio had been suspended with pay pending the outcome of internal investigations.
“This resolution was taken in response to serious concerns related to financial governance, operational delivery and executive accountability.
“The suspensions are effective immediately and will remain in place for a period not exceeding three months,” said the company.
During this period, the board said it will be engaging the shareholder, the Limpopo Economic Development Agency, to provide strategic and operational support, including the secondment of interim leadership resources to ensure the continued delivery of essential public transport services.
“We appeal for cooperation and support from all stakeholders during this transitional period and will provide further updates as necessary,” said the board.
ANC Youth League welcomes decision
The ANC Youth League in Limpopo commended the company for its action.
Provincial secretary Phineas Sebola said the lack of pension payments had a profound impact on retired and current employees.
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Some employees, he said, had unfortunately passed away before receiving the money they were owed.
Sebola added that the company had a responsibility to rectify logistical issues in Limpopo and provide affordable transportation services.
“This viable transport mode for our people has been disconnected from the communities due to financial mismanagement.
“As the ANCYL, we view this as an opportunity for our parents, brothers and sisters who worked for the company for years to receive justice and ultimately obtain what is due to them.
“In addition, the ANCYL advocates for the review of the board and urges the departments responsible to consider dissolving the board and bringing a new structure dominated by young people to bring life in GNT.
“It is in our view that the board has not been doing its work efficiently. Instead, it is now shifting the problem to senior executives.
“We believe that older members may be experiencing diminishing returns in terms of their capacity, leading to ineffective governance of our institutions or companies.
“The inclusion of young people will bring fresh perspectives and energetic engagement to the table, offsetting potential fatigue among older members and facilitating the efficient operation of the company,” Sebola said.
DA lays charges
On Monday the DA, the third biggest political party in Limpopo after the EFF and the ANC, laid criminal charged at the Polokwane police station against LEDET and LEDA. This followed years of complaints over unpaid pension funds and medical aid payments to GNT employees.
“The board and executive management of LEDA, as the sole shareholder of GNT, bear statutory and fiduciary oversight responsibilities for GNT’s operations and financial conduct. They, too, must be held accountable and face consequences.
“Unpaid contributions for pension fund schemes now total R6.78 million, affecting 945 employees. In some cases, employee membership has already been suspended.
“If a partial payment of R1 million 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.
“Medical unpaid contributions totalled R3.21 million, affecting 247 employees. All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket,” said Jacques Smalle, member of the provincial legislature in Lebowakgomo.
On Friday, LEDA told The Citizen that it had settled the bill and paid an amount of R9 million towards the employees’ pension fund and medical aid contributions.
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