The cash-strapped Limpopo government bus company, Great North Transport (GNT), has been rocked by another scandal after failing to pay its employees’ pension and medical aid contributions.
Democratic Alliance (DA) Limpopo leader Jacques Smalle has revealed that the embattled bus company is sitting on over R6 million of unpaid pension fund contributions and a further R3 million of medical contributions.
According to the report, 945 employees are at risk of losing their pension fund contributions, while 247 employees will not access their medical benefits as a result of GNT’s non-payment.
Although the company deducts these contributions from employees’ salaries, it continuously fails to remit them to the pension and medical administrators.
“The Unpaid pension fund contributions to three pension schemes now total R6.78 million, affecting 945 employees. In some cases, employee membership has already been suspended. If the default continues, employees’ risk permanently losing their pension benefits.
“Medical aid contributions, Total unpaid premiums amount to R3.21 million, affecting 247 employees. All medical aid coverage for GNT employees has been suspended, meaning employees cannot access healthcare services unless they pay out of pocket, “ Smalle said.
The DA leader said that if a partial payment of R1 million is not made by the end of May, all employee memberships will be suspended.
On Monday, 26 May, the DA in the province laid a criminal complaint against the board and executive management of Great North Transport (GNT) for the non-payment of employee pension fund and medical aid contributions with the Polokwane police.
“This crisis is the result of a much deeper rot at GNT-driven by years of corruption, mismanagement, and the absence of oversight or accountability. Gross failures to implement a viable turnaround strategy which needs further investigation have only worsened the collapse.
“GNT has now been so hollowed out and emaciated that it is no longer a sustainable operation. As the DA, we will continue to expose the full extent of this collapse in the coming days,” the DA leader said.
The bus company, which transports thousands of commuters across Limpopo villages, is a subsidiary of the Limpopo Economic Development Agency (LEDA), an entity of the Limpopo Department of Economic Development and Tourism (Ledet).
The party says LEDA, too, must be held accountable and face consequence management, as a sole shareholder.
Last year in October, retired Great North Transport (GNT) employees and families of deceased workers held protests at the Limpopo Premier’s office demanding a total of R300 million in unpaid pensions and provident fund monies.
Leda CEO Thakhani Makhuvha committed that the entity will fast-track the payment of Great North Transport (GNT)’s outstanding pension fund and medical aid contributions this week, in a bid to meet the company’s statutory obligations.
Makhuvha conceded that GNT has been facing ongoing challenges in fulfilling these obligations due to financial constraints.
“We have taken an important decision, as GNT’s shareholder, to make the necessary payments and bring all outstanding contributions up to date. We are hopeful this situation will not recur,” Makhuvha stated.
In response to the DA‘s decision to lay criminal charges against both GNT and LEDA, Makhuvha said:
“While it is within the DA’s right to pursue legal action, we want to assure the public that LEDA has been in continuous engagement with GNT to find a lasting solution to this matter”.
