SIU obtains order to stop ex-DDG Zandile Mathe withdrawing pension

The Special Investigating Unit (SIU) has obtained an order interdicting the payout of the pension benefits of former water and sanitation department deputy director-general Zandile Yvonne Mathe.

The order issued by the Special Tribunal on January 13 states Mathe is prohibited from withdrawing or diminishing the value of funds held or managed by her pension fund, specifically the Government Employees Pension Fund (GEPF) and the Government Pensions Administration Agency (GPAA).

The SIU approached the Special Tribunal to stop the withdrawals when Mathe was dismissed after disciplinary proceedings based on an SIU referral and when she took steps to claim her pension benefits. 

“The order is part of the implementation of the SIU’s investigation outcomes and consequence management to recover financial losses suffered by the state because of corruption, maladministration or negligence,” the SIU said on Friday.

The investigation stemmed from a proclamation issued by then president Jacob Zuma in 2012 that relates to a contract for the construction of a water pipeline in Vuwani, Limpopo.

Based on the investigation's findings, the SIU, issued a summons in the Pretoria high court against the contractor Ascul Construction CC, its director Dan Lucas Sikhosana, Mathe and the department’s CFO Mpho Joseph Mofokeng. 

The SIU is seeking an order declaring the contracts valued at about R170m unlawful due to alleged procurement and other irregularities. Additionally it is claiming damages amounting to about R55m. 

“The SIU aims to hold Mathe and Mofokeng jointly and severally liable, with the contractor, based on their alleged acts of maladministration, statutory noncompliance and negligence in fulfilling their official duties,” it said.

The SIU believes their actions contravene various regulations, including the Public Finance Management Act, National Treasury regulations, the department's supply chain management policy and the Construction Industry Development Board Act in relation to the contested contract. The main claim is being defended and the litigation is ongoing. 

The tribunal also ordered that within 60 days of its order the GEPF and GPAA assess the value of Mathe’s pension benefit and notify the relevant parties whether the claimed amount instituted in the high court action exceeded the SIU’s claim.

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