The Gauteng Department of Health is under increasing pressure to take action against Mafoko Security Patrols, a business hired to protect a number of provincial hospitals, due to claims that it has been taking provident fund contributions out of employees' wages without depositing them into the Private Security Sector Provident Fund (PSSPF).
The South African Federation of Trade Unions (SAFTU) General Secretary Zwelinzima Vavi has expressed outrage over court findings confirming that Mafoko deliberately withheld workers’ provident fund contributions.
“This is not a mistake. It is a deliberate act of theft and contempt for the law, a corporate crime committed against some of the most vulnerable and exploited workers in our country,” Vavi said.
He explained that for years, thousands of Mafoko security guards had deductions taken from their wages intended for retirement, family support, or relief in cases of death or disability, but the funds never reached the provident fund. Instead, Mafoko allegedly pocketed the money while continuing to win lucrative government contracts.
Vavi said that the Pension Funds Adjudicator (PFA) found Mafoko in breach of provident fund laws, a ruling upheld by the Ga-Rankuwa High Court. He estimates the company owes workers between R111 million and R330 million.
“Even worse, the High Court dismissed Mafoko’s attempts to block enforcement, confirming that PFA determinations are civil judgments enforceable by law. Mafoko owes workers a staggering amount, exposing the deep rot in the private security sector,” he said.
Vavi slammed Mafoko for continuing to operate and exploit workers despite court rulings, questioning why the Department of Employment and Labour, the Financial Sector Conduct Authority (FSCA), and police have not acted. He described the situation as “wage theft on a national scale,” leaving security guards without the retirement security they deserve.
He called for immediate criminal prosecution of Mafoko executives, urgent enforcement of all outstanding rulings, blacklisting from state contracts, a forensic audit of the provident fund, and nationwide mobilisation to protect workers. “The era of impunity is over. Workers built this country; we refuse to be robbed of our sweat, our dignity, and our future,” Vavi warned.
The Democratic Alliance (DA) Gauteng Shadow MEC for Health, Jack Bloom, also called for Mafoko to be sanctioned, highlighting that the company holds several lucrative hospital contracts, including a R58 million annual contract for 206 guards at George Mukhari Hospital.
He stressed that under Section 13A of the Pension Funds Act, employers must pay retirement fund contributions, and failure to do so can lead to criminal penalties, including fines and imprisonment.
Bloom warned that hospital security costs have surged from R655 million in 2022 to R2.54 billion this year, raising concerns of corruption and underpayment of workers.
He insisted that: “the Department needs to set an example with Mafoko by sanctioning them for the poor treatment of their guards” and urged a review of security spending to ensure funds are directed toward quality healthcare.
In response, the Gauteng Health Department said it is managing contracts through signed service level agreements, and Mafoko has confirmed via email that it complies with legislation.
The department added that it has not received any complaints from Mafoko security officers regarding provident fund payments but will take corrective action if issues arise.
Regarding sanctions, the department said any confirmed non-compliance with labour laws would be addressed through penalties outlined in service agreements. It also confirmed that preventative measures are in place, requiring all hospital security contractors to comply with legislation to avoid similar issues.
“In cases where the department has information about non-compliance with labour legislation, it will impose penalties in accordance with the Service Level Agreement and the General Conditions of Contract Management,” the department said.
The Star
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