Mafoko Security company has stepped in to set the record straight as outrage mounts over a court finding that it deliberately withheld employees’ provident fund contributions.
This follows the public outcry from the South African Federation of Trade Unions (SAFTU) General Secretary Zwelinzima Vavi and the Democratic Alliance (DA) Gauteng Shadow MEC for Health, Jack Bloom, who both demanded action against Mafoko.
They raised concerns that despite holding several lucrative hospital security contracts, including a R58 million annual contract for 206 guards at George Mukhari Hospital, the company had never paid over workers’ provident fund deductions.
According to both the Pension Funds Adjudicator and the Ga-Rankuwa High Court, the unpaid contributions could range between R111 million and R330 million.
Vavi described the matter as proof of systemic wage theft in the private security sector, calling for swift action including criminal prosecutions and blacklisting to protect workers who have long faced exploitation in the industry.
In response, Mafoko Security Patrol Director Lebo Nare firmly rejected the accusations, stating that Mafoko employs more than 6,000 workers and has consistently made the required deductions and payments in line with labour and pension regulations.
She explained that the company stopped contributing to the Private Security Sector Provident Fund (PSSPF) and shifted to Alexander Forbes after years of documented governance failures at the PSSPF, which was ultimately placed under statutory management.
“Protecting workers’ funds necessitated that move. Over 90% of employees who lodged claims have already received their benefits from Alexander Forbes,” Nare said.
She added that in cases where the Pension Funds Adjudicator issued determinations and these were settled in court, Mafoko complied fully and kept detailed records.
According to her, the only outstanding amount currently disputed with the PSSPF is approximately R9 million, a figure she says stems from timing differences linked to late payments from government departments and municipal clients, not from theft or unwillingness to pay.
Nare further refuted claims that the company owes workers hundreds of millions, dismissing the circulating figures as false, reckless and in need of urgent correction.
“These are the facts. They are verifiable, and we are willing to provide proof (with consent from affected employees) to any legitimate authority,” she said.
She went on to explain that a structural flaw exists in how contributions are enforced in the private security sector. Employers are required to pay by the 7th of each month, even though client payments, especially from government institutions, are often unpredictable and delayed. Responsible employers like Mafoko typically advance employees’ portions upfront, but when full payments from clients arrive late, punitive daily compound interest is triggered.
Nare argued that this interest does nothing to grow workers’ retirement savings and instead funds administrative and legal collection costs.
She called the system unfair, saying: “The result is a cycle of debt that drains resources that could be used to create jobs or improve benefits, without depositing a single extra penny into a guard’s account. That cannot be justified as ‘pro-worker.’”
Nare also outlined several reforms needed to stabilise the security sector, including contribution rules that accommodate real-world client delays, interest that goes directly to workers’ retirement savings, clear and standardised contribution statements, and stronger independent oversight of funds with governance problems.
The Star
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