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03 Oct, 2025
Open letter to the Financial Sector Conduct Authority, National Treasury and the government of South Africa on pension arrears
Mr Enoch Godongwana, MP Minister of Finance Private Bag X115 Pretoria 0001 and Mr Velenkosini Hlabisa, MP Minister of the Department of Cooperative Governance and Traditional Affairs Private Bag X802 Pretoria 0001 and Commissioner Unathi Kamlana Financial Sector Conduct Authority PO Box 35655 Menlo Park 0102 Dear Minister Godongwana, Minister Hlabisa and Commissioner Kamlana An open letter to the Financial Sector Conduct Authority, National Treasury and the government of South Africa on pension arrears 1. The United Democratic Movement (UDM) writes with grave concern about the worsening crisis of unpaid pension contributions, recently highlighted by the Financial Sector Conduct Authority (FSCA). According to the FSCA, employers across South Africa owe more than R7.29 billion in pension arrears, affecting nearly 600,000 workers. 2. This is not only a financial scandal; it is a betrayal of trust. Pensions are not perks; they are deferred wages. For thousands of workers, the discovery that contributions deducted from their salaries were never paid over to pension funds has caused shock and despair. Many only became aware of this painful truth when attempting to access their savings under the two-pot retirement system in September 2024. 3. The introduction of the two-pot retirement system was meant to improve financial security by splitting new contributions into a savings pot, from which one withdrawal can be made each year, and a retirement pot, which remains locked until retirement. Instead of providing relief, the system has exposed the depth of the arrears crisis. When workers tried to make their first withdrawals, many discovered that their contributions had never been transferred to their funds. What should have been a safety net has become proof of betrayal, leaving workers with empty accounts where their savings should have been. 4. Families who are already struggling with rising costs of living now face the indignity of poverty in their old age because of the failures of their employers and the weakness of the regulatory framework. 5. As a party within the Government of National Unity (GNU), the UDM sees it as our duty to exercise firm oversight from within, ensuring that government does not turn a blind eye to failures that harm workers and their families 6. The scale of the crisis 6.1. The arrears problem is no longer marginal; it is systemic. Arrears surged by 40% in one year to reach over R7 billion. Nearly 600,000 workers are affected, with many still in employment and others already retired. Over 1,000 cases have been referred to the South African Police Service, and more than 8,000 instances of legal action have been initiated by retirement funds. Yet, prosecutions remain limited and recoveries slow. 6.2. This problem is not confined to small businesses. Large provident funds such as the Auto Workers Provident Fund and the Motor Industry Provident Fund account for the bulk of legal actions, and government itself has emerged as one of the biggest culprits. 7. Accuracy and transparency of data 7.1. While the scale of the arrears is shocking, there are also concerns about the accuracy of FSCA data. Reports have shown that some employers named in arrears lists insist they had made payments, but that the arrears were still reflected because of delays in updating data, incomplete reporting by funds, or administrative errors. 7.2. Such inaccuracies undermine trust in the regulatory system, cause reputational harm to compliant employers, and create confusion for workers. Transparency only has value if the information is accurate and up to date. Workers and Parliament need figures they can rely on. 8. The systemic weaknesses 8.1. The UDM acknowledges steps the FSCA has taken, including publishing arrears lists, collaborating with Treasury and the Hawks, recovering R39 million and R50 million from municipalities through withheld transfers, and securing court orders against delinquent municipalities and company directors. These are important interventions. 8.2. However, they remain insufficient. The FSCA itself admits that it lacks full powers over employers until the Conduct of Financial Institutions (COFI) Bill is passed into law. Enforcement is slow, arrears continue to grow, and some retirement fund trustees are failing to act decisively against non-compliant employers. In the meantime, workers continue to suffer while billions in deferred wages are withheld. 9. Accountability and governance 9.1. It is especially alarming that government itself (through national and provincial departments and municipalities) is among the biggest culprits, owing an estimated R1.5 billion despite Treasury interventions. Municipalities in particular are repeat offenders, often defaulting again even after arrears are recovered through withheld equitable share transfers. National and provincial departments are not immune either. 9.2. This is unacceptable. When the state itself is in breach, it weakens public confidence in the entire system and sets a terrible example for private employers. The UDM cannot remain silent while the state itself is one of the worst offenders. We will use every platform in Parliament, including SCOPA, to hold both our partners and ourselves to account. Leadership cannot demand compliance from others while defaulting on its own workers’ pensions. 10. In light of the above, the United Democratic Movement calls for urgent action on the following: 10.1. The Minister of Finance to prioritise the Conduct of Financial Institutions Bill and for the Portfolio Committee on Finance to fast-track its passage through Parliament, so that the FSCA is fully empowered to act against defaulting employers. 10.2. The FSCA, working with National Treasury, the Hawks and the National Prosecuting Authority, to enforce the law through criminal charges, asset seizures and by holding directors, officers and municipal managers personally liable. 10.3. The FSCA to continue publishing arrears lists, but to strengthen them by ensuring accuracy, providing sectoral breakdowns, and reporting not only on arrears but also on recoveries and enforcement actions, so that workers, Parliament and the public can track real progress transparently 10.4. National Treasury and Minister Velenkosini Hlabisa, in his role as Minister of Cooperative Governance and Traditional Affairs, to intervene firmly in delinquent municipalities and government departments, with SCOPA exercising oversight to ensure that such failures do not repeat. 10.5. The FSCA to act against trustees who neglect their duty to recover contributions from defaulting employers. 10.6. National Treasury to put in place interim protection measures so that workers making use of the two-pot system are not left destitute because of employer failures. 11. Conclusion 11.1. South Africa cannot tolerate a situation where nearly R7.3 billion in pensions is left unpaid while workers go hungry and pensioners live in indignity. Pensions are deferred wages earned through years of labour and withholding them is nothing short of theft from the future. 11.2. Being part of the GNU does not mean turning a blind eye. It means doubling our vigilance. The UDM will continue to play its role by exercising firm oversight inside government to safeguard the rights of workers and ensure public money is used with integrity. Yours sincerely Mr NLS Kwankwa, MP Deputy President of the United Democratic Movement Party Leader in Parliament Copied to: Ms Nomakhosazana Meth, MP - Minister of Employment and Labour Mr Songezo Zibi, MP - Chairperson of the Standing Committee on Public Accounts Dr Mkhacani Maswanganyi – Chairperson of the Standing Committee on Finance Mr Makhosonke Maneli – Chairperson of the Portfolio Committee on Employment and Labour Dr Zwelini Mkhize – Chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs Ms Thandi Nontenja, MP - UDM Member on the Standing Committee on Public Accounts
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03 Oct, 2025
Set humanitarian activists free; let aid reach Gaza
Statement by Nqabayomzi Kwankwa, MP, UDM Deputy President and Leader in Parliament The United Democratic Movement (UDM) joins the global outcry over the abduction of the Global Sumud Flotilla activists, including South Africans who were on a humanitarian mission to deliver aid and solidarity to the people of Gaza. We demand their immediate and unconditional release. These South Africans, alongside others from around the world, embarked on a mission of compassion. Their detention is not only a violation of their rights, but also an attack on the principle of humanitarian action itself. No one should be punished for carrying food, medicine, and hope to people in desperate need. The International Court of Justice ordered Israel to halt military operations in Rafah, to allow unimpeded humanitarian access, to prevent acts that could constitute genocide, and to preserve evidence of violations. Israel’s failure to comply with these binding measures defies international law, undermines the authority of the world’s highest court, and pushes the prospects of peace even further out of reach. The UDM has consistently called for peace in the Middle East. But peace cannot exist while humanitarian aid is blocked, and human rights are trampled underfoot. South Africa, given our own history of apartheid and liberation, has a moral responsibility to stand with the oppressed and to advocate for peaceful resolution. Our position is clear: the killing of civilians, the destruction of communities, and the obstruction of humanitarian aid are indefensible. The UDM reiterates its view that the long-term solution to this conflict lies not in violence or exclusion, but in inclusive dialogue and a just peace that upholds the rights and dignity of both Palestinians and Israelis. We reaffirm our support for Palestinian statehood and peaceful coexistence in the region. The abduction of humanitarian activists must be a wake-up call to the international community: inaction emboldens lawlessness.
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01 Oct, 2025
Respect the dead, protect the living: UDM on Gauteng cemeteries
Statement by Andile Jabavu, Gauteng Provincial Secretary of the United Democratic Movement The United Democratic Movement (UDM) in Gauteng notes with deep concern the worsening pattern of neglect, vandalism, illegal dumping, informal settlements and more tarnishing cemeteries across the province which are sites of dignity, memory and community — not just plots of land. Despite repeated outcries from communities who have voiced their anger and frustration over these issues, the matter has only worsened. From Bredell Cemetery (Kempton Park), Kromvlei and Alberton Cemeteries (City of Ekurhuleni) to Pretoria East Cemetery and Zenzele Cemetery in the West Rand, multiple reports in Gauteng have highlighted growing incidents of uncontrolled waste dumping, safety risks and concerns such as damaged infrastructure and overgrown vegetation as well as people establishing unlawful occupation within burial grounds. It is deeply concerning that families arrive to find their loved ones’ graves desecrated, memorials stolen, tombstones broken or burial grounds overtaken by litter and informal settlements further eroding these cemeteries. Meant to offer dignity in death and solace to the living, burial grounds are being reduced to habitats of decay and disregard. What is most disheartening is that these same grievances have been emphasised from one community to the next. In particular, the absence of visible law enforcement or municipal maintenance, overgrown grass, broken fences and even shacks erected over graves have turned cemeteries into unsafe and unhealthy spaces. The erection of informal dwellings on burial sites is not only disrespectful but also poses serious health risks and reflects shocking failures in town planning and land use management. As symbols of respect, tradition, community and history, this is a matter that is affecting different communities and religious backgrounds. Communities should no longer be left to fend for themselves in these concerning circumstances with little to no meaningful intervention from local authorities. Protection, restoration and proper management of cemeteries needs to be prioritised quickly and urgently which includes dedicated funding for infrastructure, security personnel and ongoing maintenance while enforcing existing municipal bylaws. What should be places of remembrance and peace should remain so to give communities and families a place of reflection, dignity and connection to their loved ones and heritage.
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01 Oct, 2025
UDM responds to Ngizwe Mchunu’s anti-LGBTQIA+ rant
Statement by Zandile Phiri, Acting Secretary General of the United Democratic Movement The United Democratic Movement (UDM) is outraged and disturbed by the appalling remarks made by Ngizwe Mchunu on his TikTok platform, Ngizwe Mchunu Online, where he launched into a hate-filled tirade targeting the LGBTQIA+ community. This was not a moment of ignorance, it was a deliberate, calculated expression of discrimination and what appears to be no less than incitement. Mr Mchunu even declared his intention to use his platform to promote prejudice, a statement as chilling as it is dangerous. These remarks come at a time when South Africa and the global community are marking Pride Month; a period dedicated to celebrating inclusion, dignity, and equality for LGBTQIA+ people. Instead of advancing unity, Mchunu’s words attempt to drag us backwards into division and hate. We must say this clearly: These remarks amount to prima facie hate speech. They appear to constitute incitement and an abuse of influence. For too long, Ngizwe Mchunu has acted with impunity, a man who believes his charisma can shield him from consequences. But what he is doing now is not entertainment. It is not culture. It is not “just an opinion.” It is a threat to lives. South Africa is gripped by a crisis of violence. Every day, LGBTQIA+ people, women, and children live with the fear of being attacked simply for existing. Every day, we bury people whose only crime was living authentically and openly. Mr Mchunu’s bigotry adds fuel to this fire. It emboldens those who already believe that difference is something to be punished. The Constitution of our beloved country guarantees dignity, equality, and freedom for all. We will not allow hate to masquerade as free speech. We will not allow platforms to become pulpits of intolerance. The UDM calls on: • The South African Human Rights Commission (SAHRC) to investigate Mr. Mchunu’s statements with the seriousness they demand. • Law enforcement agencies to determine whether this incitement qualifies as a prosecutable offence under our hate speech and anti-discrimination laws. • Online platforms and broadcasters to enforce community standards and take action against accounts that spread hate, violence, or discrimination. We also call on all South Africans, artists, leaders, traditional leaders, influencers, everyday citizens to stand up. Silence is complicity. Neutrality in the face of hate is siding with the oppressor. To the LGBTQIA+ community: You are seen. You are valued. You belong. Your existence is not up for debate. Your right to live free from fear is non-negotiable. And we, the United Democratic Movement, stand beside you without hesitation or condition. This Pride Month, in South Africa and across the world, we recommit ourselves to building societies where diversity is celebrated, dignity is defended, and hate has no home. Ngizwe Mchunu’s voice may be loud, but it is hollow. It echoes a past we refuse to return to. South Africa’s future is one of inclusion, of justice, of unity in diversity. The UDM will defend that future with every tool at our disposal.
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01 Oct, 2025
The R26 billion question: where is the uMkhomazi water?
Statement by Thandi Nontenja, MP, UDM Member of the Standing Committee on Public Accounts LISTEN: Ms Nontenja on the subject of the uMkhomazi projects The United Democratic Movement (UDM) is gravely concerned about the continuing delays and disputes in the Upper and Lower uMkhomazi Water Projects, which have left communities without water despite billions of rands being committed. The Upper and Lower uMkhomazi Water Projects were meant to secure supply for both inland and coastal communities. The Upper scheme, centred on the Smithfield Dam and transfer tunnel, was designed to boost the uMngeni system and bring long-awaited relief to Durban and surrounding areas. The Lower scheme, with its storage dam and treatment works, was intended to serve southern eThekwini and the Ugu District, benefiting an estimated 50,000 households in towns like Amanzimtoti, Umkomaas, Scottburgh and Hibberdene. The Upper uMkhomazi scheme was originally projected to be completed in 2018. Instead, it has been dogged by funding shortfalls, procurement disputes and legal wrangles. Its completion date has now been pushed to 2032. This means that communities such as Tafelkop, west of Durban, have lived with dry taps for over 15 years and will wait another generation for what their constitutional right is. The UDM is disturbed that public money continues to flow, but public benefit does not. Government admitted as far back as 2015 that affordability concerns had stalled the project. In 2025, a R7 billion tender for the Lower uMkhomazi scheme was interdicted in court over disputes about the adjudication process. These are not small technical glitches — they are signs of systemic weaknesses in financial governance and procurement. The promises made to resuscitate and fast-track the project, including those by Senzo Mchunu during his tenure as Minister of Water and Sanitation, have not been honoured. Now the urgent question is what the incumbent Minister, Pemmy Majodina, and Deputy President Paul Mashatile, who oversees infrastructure coordination in the Government of National Unity, are doing to prevent billions more from being wasted while people still fetch water from streams. It is unacceptable that a R26 billion investment can be committed to schemes that deliver ribbon cuttings, contracts and disputes, but not water. The UDM therefore demands: 1. A full Standing Committee on Public Accounts (SCOPA) inquiry into the expenditure on the uMkhomazi projects to date, with disclosure of every contract and payment. The UDM will formally write to SCOPA to request that such an inquiry be initiated as a matter of urgency. 2. A halt to further waste until there is assurance that the money is translating into water for households. 3. Quarterly reporting to the Portfolio Committee on Water and Sanitation on progress, costs and delays. 4. Accountability from both current leaders and former ministers who presided over these failures, including appearances before Parliament and referrals to law enforcement where misconduct is proven. 5. Transparency and expedited resolution of procurement disputes that have landed in court, so that communities are not held hostage to years of litigation, with interim measures put in place to ensure access to water in the meantime. The UDM is serious about infrastructure development as the backbone of service delivery and economic growth. We have long argued for investment in dams and water storage schemes to secure supply for households, agriculture and industry. Projects like the uMkhomazi Water Scheme are urgently needed and should be welcomed, but they must be delivered on time, on budget and free of corruption. South Africans cannot drink blueprints and promises - they need functioning infrastructure that works Water is life, and public money is sacred. It is SCOPA’s duty to ensure that every rand spent on infrastructure, including water, translates into services that work, not empty promises and endless delays.
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30 Sep, 2025
Bantu Holomisa on the passing of Ambassador Nathi Mthethwa
Statement by President of the United Democratic Movement, Deputy Minister Bantu Holomisa, MP I am deeply saddened by the passing of His Excellency, Ambassador Nathi Mthethwa, and I extend my heartfelt condolences to his family, friends, and colleagues. Ambassador Mthethwa served our nation with distinction, demonstrating unwavering dedication to advancing South Africa’s diplomatic and strategic interests. His professionalism, wisdom, and commitment earned him the respect and admiration of colleagues and international partners alike. During my recent visit to the French Republic for the IHEDN Forum on the African Continent (FICA) and related bilateral defence engagements in June 2025, Ambassador Mthethwa, through the Embassy, provided vital logistical support, mobility arrangements, and a comprehensive briefing to our delegation prior to departure. His guidance and insights were invaluable in ensuring that our engagements were well-prepared, strategically aligned, and impactful in representing South Africa’s interests. The meticulous support he provided, including coordinating transportation, scheduling, and access to key stakeholders, significantly contributed to the success of our working visit to France, making the trip smooth, effective, and productive. One thing Ambassador Mthethwa always never forgot to mention whenever we were in the same room, to audiences who cared to listen, is that he received his early military training under the supervision of the Transkei Defence Force officers, where he completed a special military training course in Port St. Johns for ANC liberation movement operatives during the struggle. That formative period helped shape his disciplined approach to service and his deep understanding of strategic defence matters. This early experience informed the wisdom, perspective, and professionalism he later brought to his distinguished diplomatic career. The United Democratic Movement mourns the loss of a devoted public servant and a true patriot. Ambassador Mthethwa’s contributions to strengthening South Africa’s bilateral relations and advancing defence diplomacy will leave a lasting legacy. I extend my prayers and deepest sympathies to his family, loved ones, and colleagues. South Africa has lost a remarkable diplomat and a servant of the people. May his soul rest in eternal peace.
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30 Sep, 2025
Bafana Bafana betrayed by the boardroom
Statement by Nqabayomzi Kwankwa, MP, UDM Deputy President and Leader in Parliament The United Democratic Movement (UDM) notes with concern the admission by the South African Football Association (SAFA) of the administrative blunder that has led to Bafana Bafana losing valuable World Cup qualifying points and being fined by Fédération Internationale de Football Association (FIFA). While SAFA has taken responsibility and apologised, this is not enough. An apology does not repair the damage done to the team’s qualification campaign, nor does it address the deeper governance weaknesses that allowed such an avoidable error to occur in the first place. Minister of Sport, Arts and Culture Gayton McKenzie has himself described this incident as an embarrassment and has promised a probe. The UDM supports this call. However, it must not end with another report gathering dust. We need genuine reform that ensures accountability at leadership level and the strengthening of administrative and compliance systems within SAFA. Football is the passion of millions of South Africans. The players on the field have given their all to carry the hopes of a nation. They should never have to see their efforts undermined by failures in administration. The UDM therefore calls for urgent reforms at SAFA, accountability measures for those responsible, and stronger oversight mechanisms to safeguard the integrity of our sporting institutions. South African football deserves leadership that is competent, transparent and worthy of the people’s trust.
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30 Sep, 2025
The R2 billion warning: reform procurement or repeat Tembisa everywhere
Statement by Thandi Nontenja, MP, UDM Member of the Standing Committee on Public Accounts The United Democratic Movement (UDM) has note with alarm the interim report of the Special Investigating Unit (SIU) into the looting of Tembisa Hospital. The SIU has confirmed what many South Africans feared: more than R2 billion was siphoned away through coordinated syndicates that exploited procurement loopholes. The report reveals that 2 207 procurement bundles, 4 501 purchase orders and 207 service providers are under scrutiny. Three criminal networks alone are linked to nearly R1.7 billion. At least 15 officials have been implicated, while R122 million in corrupt payments have been traced to insiders. Services were invoiced and paid for but never delivered. Even losing bidders were paid. The sophistication of these schemes, including fake supply chain documents, front companies and manipulation of three quote rules, proves that this was not opportunism but organised criminality within the state. The assassination of whistle-blower Babita Deokaran is a tragic reminder of how dangerous it has become to expose corruption in our country. Her murder was not in vain; the SIU findings vindicate her warnings. But South Africans cannot be expected to rely on martyrs to defend public money. The UDM is clear: Tembisa is not an outlier. It is a mirror of how corruption has hollowed out our state. The same patterns can be seen in housing projects, water schemes, municipal contracts, state owned enterprises and schools. This case must be treated as a wakeup call for comprehensive reform across all sectors, not only in health. We therefore call for: 1. Swift prosecution of all implicated individuals with clear timelines for referrals from the SIU to the National Prosecuting Authority (NPA), and public updates on progress in the courts. 2. End to end digital procurement across government with full transparency and audit trails. 3. Whistle-blower protection as a matter of urgency, with the state ensuring that the next Babita is not left vulnerable. 4. A specialised anti-corruption task team combining the SIU, NPA, Auditor General and SAPS commercial crimes units, with quarterly public reporting. 5. Swift recovery of assets so that mansions, cars and bank accounts bought with stolen funds are seized and redirected to service delivery. 6. Political accountability so that senior officials and politicians who presided over these failures must answer, not hide behind process. South Africa cannot afford another decade of commissions and reports gathering dust while syndicates loot unchecked. Every stolen rand is a bed without linen, a clinic without medicine and a community without water. The Tembisa heist is not only about one hospital. It is the clearest example yet of a state where corruption has become a parallel system of government. Unless procurement is reformed from top to bottom, we will see Tembisa repeated in every department and municipality. The UDM stands ready to fight for reforms that restore dignity to our public finances, protect whistle-blowers, and return stolen resources to the people they were meant to serve.
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