Tuesday’s judgment by Judge Siwendu calls for the Government Employees Pension Fund and the Government Pensions Administration Agency to halt payment of R3.4 million in pension benefits to Pakiso Mothupi. 

The former Head of the Department of Public Works, Roads and Transport in North West has been implicated in the awarding of an unlawful contract during his time at the department. 

SIU spokesperson, Kaizer Kganyago, says the application to freeze Mothupi’s pension benefits follows the signing of a proclamation authorising the investigation into allegations of corruption, malpractice, maladministration and unlawful appropriation or expenditure of public funds.

“He authorised payments to Ayamah Consulting Engineers (Pty) Ltd (Ayamah) in circumstances where there were no services rendered to justify the payment, resulting in financial losses of R166 290 625,” says Kganyago. 

“The SIU intends to launch an action in the Tribunal within 30 days to recover the amount. 

Ayamah, an engineering consulting company, provided water and sanitation services to Mbombela Local Municipality between July 2014 and July 2017. 

“Utilising the contracting mechanism provided in Treasury Regulation 16A6.6, which permits a state organ to participate in a pre-existing contract with other state organs and or institutions, on 7 November 2016, Mr Mothupi wrote to Mbombela requesting to participate in the contract between the municipality and Ayamah,” Kganyago explains. 

“After Mr Mothupi sent the letter to Mbombela, the Department’s Bid Adjudication Committee met on 9 November 2016 to consider and recommend the participation. However, the BAC’s recommendation was not for participation in a contract for water and sanitation services but for roads. 

“The recommendation was followed by the appointment of Ayamah embodied in a letter signed by Mr Mothupi dated 11 November 2016.”

Mothupi was suspended from the department in September 2018 after the claims surfaced.

He was fired earlier this year. 

“Even though the investigation is ongoing, the SIU claims that the Department incurred fruitless and wasteful expenditure because Mr Mothupi deliberately went out of his way to violate the law and unlawfully appointed Ayamah,” Kganyago says.

Jacaranda News