COSATU Demands Investigation into MEPF Embezzlement Allegations

The Congress of South African Trade Unions (COSATU) has expressed deep concern over allegations of embezzlement at the Municipal Employees Pension Fund (MEPF), following reports of a romantic relationship between the fund’s principal officer and its administrator.

The allegations suggest that MEPF paid R333 million to Akani Properties, the fund’s administrator, to purchase land in 2018. The land was subsequently developed for a hotel, with Akani retaining ownership of the title deed and shares in the hotel.

COSATU has condemned these actions as an “abomination” and a betrayal of the trust placed in the fund by its 30,000 members. The union emphasizes that MEPF has a fiduciary responsibility to safeguard workers’ retirement savings and adhere to strict guidelines for managing pension funds.

The conflict of interest between the principal officer and the administrator has seriously compromised the integrity of MEPF, according to COSATU. Akani, as the fund’s administrator, should be solely focused on managing the R26 billion in pension assets of municipal employees.

COSATU has called on the Financial Sector Conduct Authority (FSCA) to launch a thorough investigation into the matter. The union believes that the romantic gestures between the individuals involved are merely a symptom of a larger problem and that further irregularities may be uncovered.

The federation supports its affiliate, the South African Municipal Workers’ Union, in its efforts to hold those responsible accountable and recover the misappropriated funds. COSATU has also requested an urgent meeting with the FSCA to discuss the issue and ensure that justice is served.

The allegations against MEPF come at a critical time, as workers are preparing to access their retirement funds under the newly implemented Two-Pot Retirement System. COSATU emphasizes that workers’ hard-earned money must be protected from mismanagement and corruption.

List of Companies who have not paid employees’ pension into their pension funds:

Annexure A_30.04.2023 – List of employers