MISA demands that municipal officials must personally pay for R1,7 billion pension theft

13 July 2026

MISA demands that municipal officials must personally pay for R177 billion pension theft

MISA, the Motor Industry Staff Association representing more than 79 000 members in the retail motor industry, condemns the shocking revelation that municipalities across South Africa owe R177 billion in unpaid pension contributions. This is not merely mismanagement but theft from workers!

For months, municipalities have been pocketing money deducted from employees’ salaries instead of paying it into provident and pension funds.

According to rulings by the Financial Sector Conduct Authority (FSCA), municipalities and employers in the retail motor industry are the worst offenders. In total R8.3 billion in pension funds are missing. The FSCA flagged over 16,000 employers that have contravened section 13A of the Pension Funds Act, which requires the payment of contributions to pension funds.

Any employer who withholds pension contributions is personally liable. MISA insists that this principle must apply to municipalities also and demands that the municipal manager, as accounting officer, and the political leadership, including mayors and councils, must face personal accountability.

“This is fraud. Workers are being robbed of their retirement security while corrupt officials walk free. Under FSCA rulings, employers who pocket pension money are personally liable. Municipal managers and political leaders must face the same consequences. Heads must roll because accountability can no longer be delayed,” says Martlé Keyter, MISA’s Chief Executive Officer: Operations.

The non‑payment of pension contributions deepens the crisis of trust in local government. It reflects the broader incompetence and corruption that has already crippled municipalities, leaving communities without reliable electricity, water and infrastructure. Now, even workers’ retirement savings are being stolen.

MISA calls for urgent investigations, prosecutions and consequence management. Pension contributions are not optional, they are a legal and moral obligation. Workers cannot continue to suffer while officials exploit systemic failures for personal gain.

South Africa cannot afford municipalities that fail their people. Protecting workers means protecting the communities they live in, and that requires decisive action against those who have betrayed the public trust. MISA demands that law enforcement agencies treat this as criminal theft and hold municipal managers and political leaders personally liable.

Issued by Sonja Carstens, Manager of MISA’s Media & Communication Department. For press enquiries contact Phakamile Hlubi‑Majola, Spokesperson of MISA, on 083 367 6417.

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