SIU freezes pension fund of retired former public works official

File picture: Philimon Bulawayo Reuters

File picture: Philimon Bulawayo Reuters

Published Mar 1, 2022

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Pretoria - The Special Investigating Unit (SIU) has been granted a preservation order, by the Special Tribunal, to freeze pension benefits belonging to former Department of Public Works and Infrastructure (DPWI) official Clive Charlton.

“The Special Tribunal order interdicts and restrains the Government Employees Pension Fund and Government Pensions Fund from paying Charlton an amount of R510 024 in pension benefits,” said SIU spokesperson Kaizer Kganyago.

“The order will operate as an interim interdict pending the final determination of an action to be instituted by the SIU in the Special Tribunal against Charlton and NECS Electrical Consulting (NECS), within 30 days.”

Between 2014 and 2018, the DPWI had appointed NECS as a service provider to render electrical maintenance and repair services, in respect of buildings owned by the DPWI, which other client departments were occupying.

The SIU investigation revealed that NECS allegedly submitted various falsified/and or fraudulent supplier invoices to the DPWI, and overcharged the DPWI, for which it suffered financial losses to the value of R510 042.60.

Charlton was employed as a chief works inspector at the DPWI, within the facilities department.

“Chief works inspector Charlton was enjoined and responsible for the verification of the subcontractor invoices submitted by the main contractor as supporting documents for payment, as they carried a 20% mark up which would be paid to NECS.

“The SIU investigation revealed that Charlton allegedly failed to perform his duties with due diligence and failed to verify with the subcontractors whether invoices were correct and authentic,” read the statement.

On September 30, 2021, Charlton retired from the DPWI, at the age of 61.

He applied for his pension benefits to be paid out.

Following SIU hearing held with Charlton, the SIU said it saw it fit and proper to request that the payout of a portion of his pension benefits be preserved.

“The preserved amount would remain, pending the finalisation of the action to be instituted in the Special Tribunal, to recover financial losses suffered by the State,” said the statement.

The SIU said it applies for preservation orders to freeze assets, bank accounts, and pension benefits early in its investigations, when it identifies evidence pointing to wrongdoing among officials and service providers.

This is to ensure that implicated parties do not dissipate assets and make it difficult for the SIU to recover financial losses suffered by the state, when the matter is finalised.

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