Municipality guilty of pension fraud

2012-03-20 11:23
Johannesburg - A 43-year-old Endumeni municipality, KwaZulu-Natal, employee who had worked for 15 years, received a pension payout for 45 years of service, Beeld newspaper reported on Tuesday.

The Natal Joint Municipal Pension Fund paid Bart Maltman R2.7m after he resigned. The municipality then reappointed him as a contract worker.

Five appeal judges found Maltman and the municipality had exploited the rules of the pension fund to "bring about a physical impossibility in real life".

Everything pointed to the fact that Maltman and the municipality had conspired to bend the pension fund's rules, the judges said.

Appeal judges Ian Farlam, Belinda van Heerden, Azhar Cachalia, Lorimer Leach and Malcolm Wallis ruled the situation was unreasonable, and ordered the municipality to pay the shortfall of R2.5m to the fund, on Maltman's behalf.

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