EPTC FRAUD-PENSION MATTER – BE WANTS TO INTERVENE

MBABANE – Business Eswatini has filed an application to participate in the matter to determine whether pension benefits of parastal employees suspected of stealing from their employer can be withheld pending proceedings to recover the money.

Business Eswatini (BE) wants the High Court to grant it leave to intervene and be joined in the matter between Eswatini Posts and Telecommunications Corporation (EPTC) and Mzwandile Gugulethu Tsela. Tsela, who was a mail sorter based at Riverstone Post Office, is accused of stealing E1 050 982 from EPTC. He resigned from work, prompting EPTC to rush to court, where it obtained an order to withhold his pension benefits pending proceedings for the recovery of the money. Tsela is opposed to the application.

Bench

The matter will be heard by a full bench comprising Judge Mzwandile Fakudze, who will preside, Judge Doris Tshabalala and Judge Ticheme Dlamini. EPTC is represented by Mxolisi Dlamini of Dynasty Inc Attorneys. In the application to intervene, which EPTC is not opposed to, Nathi Dlamini, the BE Chief Executive Officer (CEO), said the purpose of the application is to seek an order to be joined in the main proceedings to enable BE to take part in the matter, representing the interests of members of the business community or employers who are its members as an employer federation.

Dlamini described human capital as an important aspect of commerce and trade. He said issues affecting employees, like the deduction of pension benefits for theft or fraud, equally affected employers and investors. The CEO said employers had an interest in recovering funds stolen or defrauded by their employees, which in some instances could add up to millions of Emalangeni, depending on the extent of the fraud per given instance.
Investors
“It would indeed be a bitter pill to swallow for investors to realise that having invested immensely and created employment opportunities in the country, they will be left empty handed when employees turn around to defraud them, knowing very well that their pension benefits will be untouchable, except for deductions related to maintenance,” said Dlamini. The CEO further submitted that the judgment of the court on the issue of pension benefits and allowable deductions, for purposes of recouping funds stolen by employees by means of a dissipation interdict, will affect employers across the board. “It is in that light that, therefore, that BE seeks to intervene and partake in the proceedings as an employers’ federation representing the interests of its members,” Dlamini said.

He informed the court that BE received a report advising about a pending court application between EPTC and Tsela, who had allegedly committed fraud and resigned from EPTC before disciplinary proceedings could be instituted. Dlamini argued that BE had direct and substantial interest in the matter as an employers’ federation protecting the interests of its members and fulfilling its role in safeguarding the interests of the business community and trading environment in Eswatini. “Any order that the court would make, in determining the issue regarding an employer’s right to an anti-dissipate interdict, in  respect of pension benefits pending civil action for recovering monies defrauding by former employees, would directly affect the rights and interests of the members of BE,” added Dlamini.The CEO also informed the court that an adverse order that the court would make would mean that the prohibition on deduction of pension benefits other than for maintenance purposes, would not be restricted to the public service or public officers but would extend to the private sector.

Repercussions

Such an order, according to Dlamini, would have negative repercussions on the economy of the country and its efforts to attract foreign direct investment. He informed the court that the country would be seen as condoning fraud and theft of investor’s funds, and as such it would be lowly ranked in the international index for ease of doing business. “Investor confidence would be eroded since investors/employers would have no real recourse against employees who defraud them amounts in the region of millions knowing very well that their employers cannot recover same from their pension benefits. “There would be no certainty that even if judgment were to be granted in favour of the employer it would be executable to recover the stolen amounts. In the eyes of investors and or the international business community, the country would be seen as promotion fraud and or theft of investors’ monies by preventing employers from recovering the stolen amounts from the stolen amounts from former employee’s pension benefits,” the CEO further said.

Negativity

He submitted that the country could not afford such negativity or erosion of investors’ confidence in its endeavour to attract foreign direct investment, which creates employment opportunities for the betterment of the lives of the ordinary citizens. Dlamini pointed out that already the unemployment rate as published by the Ministry of Labour and Social Security stands at 33.3 per cent and youth unemployment is at 58.2 per cent. The application by BE will be argued tomorrow.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: