Key partners in the government of provincial unity are at loggerheads over the decision of the Department of Cooperative Governance and Traditional Affairs (CoGTA) to offer a pension fund to traditional leaders.

The DA and the IFP have expressed opposing views on the matter, with the DA warning that the government is not in a financial position to afford the expenditure. However, the IFP fired back, stating that the DA’s warning was misguided. CoGTA announced on Wednesday that it has reached a historic milestone with the official approval of the KZN CoGTA Pension Fund for Amakhosi by the Financial Sector Conduct Authority (FSCA).

“This approval confirms that all regulatory requirements have been duly fulfilled, paving the way for the formal implementation of the pension fund. The initiative is being rolled out in partnership with a commercial bank, a strategic collaborator in ensuring the financial sustainability and operational integrity of the fund.

“The pension fund is designed to uphold the dignity and social standing of Amakhosi by providing a structured savings mechanism that will be accessible upon retirement. This marks a significant step in recognising the lifelong service and leadership of traditional leaders within the province,” said the CoGTA statement.

In addition to retirement benefits, the Amakhosi Legacy Plan will incorporate comprehensive medical cover, ensuring that Amakhosi have access to essential healthcare services. MEC for Cooperative Governance and Traditional Affairs, Reverend Thulasizwe Buthelezi, welcomed the FSCA’s approval, describing it as a “significant breakthrough” in the department’s ongoing efforts to provide long-term stability, financial security, and social protection for Amakhosi and their families.

“This initiative affirms our dedication to honouring the invaluable role played by Amakhosi in our communities. It is a tangible expression of our respect and recognition for their leadership, and a step towards ensuring their welfare beyond active service,” said MEC Buthelezi.

However, DA MPL and chairperson of the CoGTA portfolio committee, Marlaine Nair, expressed serious reservations about the decision. She released a statement on behalf of the committee expressing concerns.

IFP members in the same committee quickly distanced themselves from these concerns. Nair stated, “I recognise the vital role of Amakhosi in our communities and support efforts to ensure their dignity in retirement. However, the approval of the new Amakhosi Pension Fund came at a time when CoGTA had lost its clean audit, failed to pay creditors on time, and municipalities across KZN are collapsing under financial strain and poor service delivery. Public dissatisfaction is growing as communities continue to face failing water, electricity, roads, and basic governance.

“As a committee, we have continually called for greater oversight and stronger support to municipalities but have repeatedly been told that this was not possible due to budget constraints. It is therefore of great concern to us that resources are now being directed to a new initiative of this scale,” she said.

Nair added that the approval of the new Amakhosi Pension Fund raises serious questions. She stated that the committee will raise these matters with the MEC at a special portfolio committee meeting: “Where is the money coming from? CoGTA is under austerity and has already taken budget cuts. We need clarity on how this pension and medical scheme will be funded. Is it sustainable?

“Traditional leadership wages were once an unfunded mandate, later covered by the Treasury. We must not repeat this mistake with another unfunded commitment,” she said.

“The committee stressed that while it respected Amakhosi and supported their welfare, it could not ignore the reality that municipalities are failing, and service delivery is at an all-time low.

“Supporting Amakhosi is important, but it cannot be done at the expense of fixing our municipalities, strengthening oversight, and restoring basic services to our people,” Nair added.

The IFP in a statement distanced itself from Nair’s comments and said it supported steps to ensure Amakhosi receive pension and medical aid benefits.

“The IFP in the KZN Legislature appreciates and supports the steps taken by the KZN MEC for Cogta, Honourable Thulasizwe Buthelezi to ensure that Amakhosi of our province receive pension and medical aid benefits. It is important to note that if Members of Parliament, Legislatures, and Councillors receive such benefits, there is no justification for withholding the same from Amakhosi.”

THE MERCURY

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