Security giant Mafoko Security Patrols has blamed broke municipalities as the reason it failed to pay pension contributions.
The debt has now ballooned to R111-million in penalties, with the company telling the Johannesburg High Court that delayed payments from its government clients pushed it into default.
Mafoko is fighting to block the sheriff from attaching its assets in Gauteng and Limpopo, after it was found guilty of failing to contribute to the Private Security Sector Provident Fund (PSSPF) for thousands of security guards, some dating back over 10 years. The company has on record stated it employs 11 000 security guards.
In a new urgent interdict, Mafoko begged the court to stop the enforcement of a writ of execution that would allow the PSSPF to recover the unpaid pension money by seizing its properties.
The firm argued that its computers and servers contain highly sensitive data linked to state entities.
“[Mafoko’s] servers and computers… contain state sensitive information that should never [be] taken into the custody or control of anyone other than [Mafoko] itself,” said company director Lebo Nare, adding that the company services airports, municipalities, state broadcasters, hospitals and universities.
Nare, in his founding affidavit, admitted Mafoko failed to make pension contributions more than 10 years ago and placed the blame squarely on cash-strapped municipalities.
“Over the years, and particularly prior to 2016, [Mafoko] fell into arrears with regards to pension fund contributions… These arrears arose from cashflow challenges posed by delayed payments by the applicant’s clients, municipalities,” said Nare.
Nare said Mafoko owed R20-million in unpaid pensions by February 2016 and later signed an acknowledgement of debt with the fund. She told the court the company had settled the full amount by 2018.
But in a scathing reply affidavit filed this week, PSSPF legal officer Ndabazovuyo Ndabeni rubbished Mafoko’s claims.
“There is no evidence to support the allegation that [Mafoko] settled the debt in full. The proofs of payment attached to [Mafoko’s] papers amount to R16180 251… Therefore, there is a shortfall of R3 987 117.”
He further revealed that Mafoko later signed a second acknowledgement of debt for R47-million – an amount it never honoured.
“Consequently, as at the date of preparing this affidavit, [Mafoko] is indebted in the minimum sum of R39 655 666 in respect of all statutory contributions and penalty interest of R111 354 605.”
The legal showdown follows years of Mafoko dodging pension payments while continuing to enjoy government security tenders. In a ruling handed down last month, acting Judge Jonathan Berger rejected Mafoko’s earlier attempt to stop enforcement of the pension debt, clearing the way for the sheriff to act.
Mafoko ignored repeated rulings by the Pension Funds Adjudicator and tried to dispute the amount owed, but the court dismissed those objections.
This week’s urgent court action marks a last-ditch effort by the company to keep its properties from being attached, while dozens of former guards – who were left without retirement security – wait for justice.
A date is yet to be determined for Mafoko’s urgent application to be heard in court.
Lawyer for the former employees, Masilo Fisha, said his clients would abide by the
court ruling.
