The Amathole District Municipality said it can’t provide details on the extent of an irregular pension payout scheme benefiting unqualifying employees.
The municipality earlier in 2026 identified that about 20 employees at different levels made irregular submissions, which have since been red-flagged by the Eastern Cape municipality.
The employees are not of pensionable age and are still employed by the district municipality, which has its administrative seat in KuGompo City.
The Amathole District Municipality, which is made up of six local municipalities in the Eastern Cape, said its probe into the irregular pension scheme is making progress.
The municipality primarily uses the LA Retirement Fund, but other workers utilise funds like the Consolidated Retirement Fund (CRF) or the Government Employees Pension Fund (GEPF).
Municipality spokesperson Sisa Msiza said it was municipal manager Bhekisisa Mthembu who identified irregularities in the processing of pension fund submissions by several employees.
“As such, he has directed an immediate internal investigation into that matter. Now, because the investigation is ongoing and it involved specific employees, the municipality is not in a position to disclose neither the numbers nor individual details at this stage.”
Msiza said no one will be exempt from being held accountable for the irregular scheme.
“Dr Mthembu has been very unambiguous on the point of accountability where it is applicable without exception, regardless of an employee’s position or seniority.”
Msiza said the municipality will provide a further update and cost breakdown once the investigation has concluded.
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