In picture: Mafube Mayor
By Thabo Mosia
The Free State High Court has delivered a damning ruling against the ANC-run Mafube Local Municipality, holding its Mayor Tlhoare Motsoeneng, Municipal Manager and Chief Financial Officer (CFO) personally liable for R14.7 million in unpaid pension contributions owed to municipal workers. The judgment, delivered on 17 January 2025, is a landmark decision in South African municipal governance, reinforcing accountability for financial mismanagement.
ANC-Run Mafube Municipality in Pension Scandal
The Mafube Local Municipality, located in the Free State, has long been plagued by allegations of mismanagement and financial irregularities. This latest ruling exposes the municipality’s prolonged failure to fulfil its statutory obligations, particularly regarding workers’ pension contributions.
According to the Municipal Workers Retirement Fund (MWRF), the municipality deducted pension contributions from employees’ salaries but failed to transfer the funds as required by the Pension Funds Act 24 of 1956. This ongoing non-compliance led to mounting arrears, prompting legal action from the MWRF to recover the outstanding amount.
Despite previous court rulings and warnings, the municipality continued to default on payments. This led the High Court to take an unprecedented step—holding individual officials personally liable for the unpaid contributions, an approach rarely applied in municipal governance cases.
Court Ruling: Personal Liability for Top Officials
The High Court’s decision is a game-changer in municipal accountability. The judgment, presided over by Justice Opperman, ruled that the Municipal Manager, Mayor, and CFO of Mafube Municipality, along with the Administrator, must jointly and severally pay R14.7 million, plus interest and legal costs.
Key Findings of the Court Judgment
• The municipality deducted pension contributions from employees but failed to transfer them to the retirement fund, violating Section 13A of the Pension Funds Act.
• The Municipal Manager, Mayor, CFO, and Administrator were directly responsible for ensuring pension payments and therefore personally liable.
• The officials are ordered to pay the full R14.7 million plus interest from 1 February 2024 until the final payment is made.
• The court further directed that a copy of the judgment be forwarded to the Director of Public Prosecutions in Bloemfontein for a possible criminal investigation.
Justice Opperman noted in the ruling:
“The Municipality would rather challenge each and every application brought to assist the pension fund members rather than pay its employees’ money to the Fund. The disappearance of the money deducted from employees remains questionable.”This statement highlights the pattern of financial mismanagement that led to this ruling.
A History of Non-Compliance and Legal Battles
This is not the first time Mafube Local Municipality has been taken to court over non-payment of pension contributions. The Municipal Workers Retirement Fund (MWRF) has been engaged in multiple legal battles with the municipality since 2011, with various court orders being ignored.
Past cases include:
• 2015: Court ordered Mafube to pay over R16 million in pension contributions.
• 2017: The municipality sought to interdict execution of a previous order, but the application was dismissed.
• 2021: The court again ruled against Mafube, ordering it to settle arrears. Appeals were dismissed.
• 2023 & 2024: The municipality attempted multiple urgent applications to halt execution of court orders, all of which were dismissed.
Justice Opperman criticized the municipality’s continued “delay tactics”, stating that it engaged in deliberate evasion of responsibility, despite having received equitable share funding from National Treasury.
Political Reactions and Public Outcry
The ruling has sparked strong reactions from political parties, labour unions, and the general public.
EFF Welcomes the Judgment
The Economic Freedom Fighters (EFF) Free State Provincial Secretary Bosanku Msimanga hailed the judgment as a victory for workers’ rights. He condemned the ANC-run municipality for “trampling on the rights of workers” and called for further investigations into corruption within local government structures.
“This judgment is a clear warning to corrupt municipal officials who think they can steal from workers with impunity. The EFF demands that all those responsible face the full might of the law!” — said Msimanga
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