Pension Funds Adjudicator rejected the request by the former financial director of the Robben Island Museum to unfreeze his retirement benefit amounting to R389,534.33. The decision was based on the fund's right to withhold funds until the criminal proceedings against him are concluded.
Arbitrator Lebogan Mogashoa found that the Robben Island Museum could prove an initial instance of dishonesty concerning the former financial director. He is accused of falsely claiming membership in the South African Institute of Chartered Accountants (SAICA) at the time of appointment.
The complainant worked at the museum from June 1, 2023, to June 12, 2025, and was a member of the Alexander Forbes Pension Fund. After a disciplinary hearing, he was dismissed allegedly due to fraud, after which the museum requested the fund to suspend his benefit payment on July 13, 2025.
The museum informed the fund that it incurred losses because the complainant was paid over 2 million rand for a position he was not entitled to hold. It was stated that between December 6, 2022, and June 12, 2025, he received a total of R4,353,711.84 based on false pretenses. The estimated damage to the museum, including legal costs, amounted to approximately 3 million rand, which exceeds the amount of his pension benefit.
Furthermore, the museum stated that it had initiated a criminal case, which is under the prosecutor's review, and sent the complainant a demand notice dated December 2, 2025, for the amount of R4,353,711.84. It also claimed to have incurred about 3 million rand in defense costs in lawsuits filed by the complainant, all of which were dismissed, as well as 2 million rand in irregular expenses related to procurement issues arising from his conduct.
The complainant denied the charges, stating to the fund that he had not been criminally charged and had not personally received a civil suit, and noted that seven months had passed since the museum's first notification of its intention to initiate legal action. In an affidavit signed by him on February 21, 2025, it was stated that his SAICA membership was terminated due to late payment of contributions, not due to misrepresentation, and his legal representative argued that the fraud claim was unfounded.
The fund gave the complainant an opportunity to respond before making a decision on the benefit suspension on October 17, 2025, pending the outcome of the criminal case. In his ruling, Mogashoa indicated that Section 37D of the Pension Funds Act allows the fund to suspend a member's benefit if the employer alleges theft, fraud, dishonesty, or misconduct, provided such conduct demonstrates an element of dishonesty. He found that the SAICA affidavit confirming the complainant's absence from the chartered accountants register substantiated the initial instance of dishonesty, and that the museum is not responsible for delays in the criminal process.
Mogashoa concluded: 'I am convinced that the losses claimed against the complainant are caused by dishonesty. Therefore, withholding his benefit is essentially lawful.' He also recognized the process as procedurally fair, as the complainant was given an opportunity to voice his objections before the fund made its decision. The complaint was dismissed.
