PRETORIA, SOUTH AFRICA – NOVEMBER 6: Reserve Bank Governor Gill Marcus shows off the new banknotes, which feature an image of former president Nelson Mandela on the front and images of the “Big Five” wild animals on the reverse, before conducting the first transaction in on November 6, 2012 in Pretoria, South Africa. (Photo by Gallo Images / Foto24 / Brendan Croft)
Municipal Councillors’ Pension Fund has reportedly been looted
An elaborate looting scheme by the Municipal Councillors’ Pension Fund has been uncovered and the Hawk’s are investigating the case.
PRETORIA, SOUTH AFRICA – NOVEMBER 6: Reserve Bank Governor Gill Marcus shows off the new banknotes, which feature an image of former president Nelson Mandela on the front and images of the “Big Five” wild animals on the reverse, before conducting the first transaction in on November 6, 2012 in Pretoria, South Africa. (Photo by Gallo Images / Foto24 / Brendan Croft)
Curators have referred the Municipal Councillor’s Pension Fund (MCPF), that has almost 6,000 members, to the Hawks due to mismanagement of funds, theft, corruption and fraud.
What is contained in the Isago deal?
The irregularities have been reported under the Prevention and Combating of Corrupt Activities Act. The North Gauteng High Court granted the Financial Sector Conduct Authority’s (FSCA) request for the MCPF to be placed under curatorship last year.
Some of the glaring irregularities that Juanito Damons and Thabang Kekana, who were MCPF curators, reported purchases from Isago@N12 Development for R120m and an additional amount of just under R17m for VAT, despite the properties registrations being under the MCPF.
Although the 11 vacant stands the MCPF acquired in Klerksdorp, North West, were valued at R46.6m, they were bought for over R136 million. A 12th property was bought for R65m, with an assessed value of R40m.
As no settlement could be reached with Isago concerning the repayment of the R120m plus the R16.8m paid for VAT, Damons and Kekana have instituted legal action.
The MCPF suspiciously overpays more property prices
A Willows Office Park property in Midrand was also reported to the Hawks after it was discovered that its ‘forced sale’ value was just under R42.9m and its ‘fire sale value’ at R55.1m.
The joint report, filed by the curators, in the North Gauteng High Court earlier this year, stated:
“This is in stark contrast to the purchase price of R70m paid by the MCPF.”
Three of the fund’s tenants have accumulated rental arrears of over R1.3m at the office park.
The law firm that oversaw the Isago deals
Maluleke Seriti Makume Matlala (MSMM) Incorporated, the legal firm that oversaw the Isago deal, has been referred to the Law Society of the Northern Provinces.
The firm reportedly charged
“unconscionable, excessive and extortionate fees and in doing so grossly overcharging the MCPF.”
The law society has assured that it will look into the claim thoroughly.
Due to the critical nature of the situation, the Political Office Bearers Pension Fund (POBPF) has been approached by the South African Local Government Association (SALGA) concerning a merge with MCPF.
The POBPF caters to MPs, MECs, premiers, deputies, cabinet ministers, premiers and provincial legislators.
