Former Kai !Garib municipal manager in court over R9 million pension fund contribution

The Hawks are South Africa's Directorate for Priority Crime Investigation which targets organised crime, economic crime, corruption, and other serious crime referred to it by the President or the South African Police Service.

The Hawks arrested former acting municipal manager of Kai !Garib local municipality for contravention of Pension Fund Act 24 of 1956. Picture: Henk Kruger/African News Agency (ANA)

Published Oct 29, 2022


Rustenburg - Former acting municipal manager of Kai !Garib local municipality, in the Northern Cape, Johnny Mackay was arrested on charges related to pension funds.

According to the Hawks in the Northern Cape, Mackay, 58, was arrested on Friday morning, and appeared in the Upington Magistrate's Court on the same day, facing charges of contravention of Pension Funds Act 24 of 1956.

"It is alleged that between September 2021 and March 2022, the accused failed to ensure that contributions deducted from Kai !Garib municipal employees was paid to the consolidated Retirement Fund for Local Government. Total predijuce to the fund exceeds R9-million," Hawks spokesperson, Nomthandazo Mnisi, said in a statement.

The National Prosecuting Authority (NPA) said Mackay, who is now the head of department of public works, faces 271 counts related to the pension fund.

"It is alleged that the accused, as the accounting officer of the municipality and as the official responsible for the overall financial affairs of the institution, unlawfully, failed to pay in full the consolidated Retirement Fund for Local Government namely: any contribution which, in terms of the rules of the fund, were deducted from employees remuneration and any contribution for which the employer was liable in terms of the rules of the fund," NPA spokesperson in the Northern Cape division, Mojalefa Senokoatsane, said in a statement.

"Mackay is currently arraigned on 271 counts of contravening section 37(1)(a) of the Pension Funds Act 24 of 1956. In terms of section 13A should a person be convicted of the offence; such accused can be sentenced to a fine not exceeding 10 million rands or to imprisonment for a period not exceeding 10 years or to both, such a fine or such imprisonment."

Mackay was granted R5000 bail. The case against him was postponed to November 25.

In a separate incident, the Hawks in Mpumalanga, said former municipal manager of Nkomazi local municipality at Malelane, Muzi Daniel Ngwenya, 55, was arrested by the Nelspruit based Hawks' Serious Commercial Crime Investigation for fraud, theft and contravening the Municipal Finance Management Act on Friday.

"The arrest followed after an investigation was carried by the Hawks where it was established that during December 2021, the suspect bought a pre-owned Mercedes Benz from a vehicle dealership in Bedfordview, Johannesburg using the municipality funds.

"He reportedly registered the vehicle in his name, prejudicing the municipality an actual loss of R900 000," Hawks spokesperson in Mpumalanga, Captain Dineo Lucy Sekgotodi, said in a statement.

She said Ngwenya appeared in the Tonga Magistrate's Court on Friday, and he was granted R10 000 bail. The case was postponed to January 25 in 2023 for further investigation.

In the Eastern Cape, the Hawks said Mandy Booysen Vardy, 39, was released on R1000 bail on October 27 for charges of theft.

"It is alleged that during the period between 17 June 2016 and 2 May 2017, Vardy employed at Ubutyebi Trust, allegedly misappropriated funds of the trust in that she transferred funds to the unknown creditors.

"According to the preliminary probe by the Gqeberha based Serious Commercial Crime Investigation of the Hawks, the accounts to which the funds were transferred, happened to be hers. The Hawks revealed that Vardy prejudiced Ubutyebi Trust fund cash to the value of more than R217 000," Hawks spokesperson in Eastern Cape, Captain Yolisa Mgolodela, said in a statement.

Vardy was released on R1 000 bail. The case was postponed to November 30 for copies of the docket and legal representation.