The Directorate for Priority Crime Investigation (Hawks) have arrested Kamiesberg Municipality's top official after more than R2 million in employee pension contributions allegedly went unpaid for nearly five years, leaving workers' retirement savings in jeopardy.
Municipal manager Rufus Beukes, 41, appeared briefly in the Garies Magistrate’s Court on Thursday, November 7.
“Beukes was arrested by the Hawks’ Serious Commercial Crime Investigation team at his work place,” said police spokesperson, Warrant Officer Nomthandazo Mnisi.
He faces charges under the Pension Funds Act 24 of 1956 for allegedly failing to transfer employees’ pension contributions to the Consolidated Retirement Fund (CRF) between September 2019 and April 2023, despite deducting these amounts from workers' salaries.
The Hawks investigation revealed that the municipality's failure to pay over the contributions has resulted in more than R2 million in late payment interest charges.
“The accused was released on R10,000 bail and the case is postponed to Thursday, December 5 for legal representation,” said Mnisi.
In a similar incident in Gauteng, Johannes Mohlala, the former municipal manager of Fetakgomo-Tubatse, was handed a suspended five-year prison sentence in the High Court in Pretoria after pleading guilty to illegally investing R230 million of public funds in the collapsed VBS Mutual Bank, violating the Municipal Finance Management Act (MFMA).
The court also ordered him to pay R100,000 to the VBS curator.
IOL