A man who worked as a manufacturing director is ensnared in a dispute over his pension benefits as his former employer wants to claim a staggering R9 million from the funds.

Philip Meyburgh was employed by Parker Manufacturing for at least 25 years until he was dismissed for gross misconduct in June 2024.

This comes after an investigation was launched in January 2024 when Parker identified anomalies indicating significant stock losses in the manufacturing operations overseen by Meyburgh.

The investigation revealed that Meyburgh had allegedly been processing numerous unauthorised journal entries with the intention to obscure the reality of stock losses. A subsequent interim audit report corroborated these claims, detailing how losses from certain items were offset by fictitious entries, creating a façade of balance in the records.

Following his dismissal in July 2024, Meyburgh contacted Sygnia Umbrella Retirement Fund (SURF) to withdraw his pension benefits. However, Parker requested SURF to withhold his pension benefits 

Parker subsequently initiated a civil claim against Meyburgh by issuing combined summons for damages with the High Court. Initially, the claim sought over R3.9 million plus interest and costs. 

Later, Parker engaged external auditors to assess and quantify the full scope of the financial loss it had suffered. The audit process resulted in an increase in the amount claimed. Based on a final report from the auditors, Parker amended its particulars of claim by raising the amount from R3.9 to R9 million.

Following the information, SURF sent Parker’s allegations to Meyburgh and he was requested to provide written representations addressing the claims. He was requested to share his version of events, specify any possible financial harm he might suffer, and include any other relevant information for SURF’s consideration.

In his reply, Meyburgh denied the allegations of fraud and dishonesty. He explained that the discrepancies in the stock records were due to issues with a new accounting system, inadequate staff training, and the pressure of a high-stress work environment. He also pointed out that Parker was aware of the adjustments he was making continuously but did not take any action. Additionally, he noted that, at the time of his submission, the employer had not yet formally initiated civil proceedings, and therefore, there was no valid reason for withholding his benefits.

Unfortunately, SURF rejected Meyburgh’s explanation as it believed that there is a reasonable chance of success in the civil claim. Furthermore, SURF said it will closely monitor the court process and wait for the final outcome.

Frustrated, Meyburgh lodged a formal complaint with the Pension Fund Adjudicator (PFA) against both Parker and SURF. He argued that SURF’s decision to withhold his benefits was unlawful and unfair. Furthermore, he said SURF failed to act with the necessary care and impartiality required of a fiduciary body when confronted with a dispute between an employer and a member. 

He further submitted that SURF’s decision was based on unsubstantiated allegations from Parker, which at the time of the decision had been articulated in a defective summons. He argued that SURF acted unreasonably by choosing to withhold his benefits when Parker had not yet established a clear prima facie case.

However, Meyburgh suffered a setback after the PFA dismissed his complaint, stating that SURF’s decision to withhold the retirement benefit was lawful and within its authority.

Determined to find resolution, Meyburgh sought relief at the Financial Service Tribunal where Advocate Kagiso Dulcie Magano noted that SURF had engaged Meyburgh regarding allegations which were raised by his former employer, and he was simultaneously given an opportunity to respond to the allegations.

Advocate Magano said SURF had demonstrated that it had no malicious intentions and had committed to monitor the ongoing litigation between Meyburgh and Parker to maintain a fair process.

Meyburgh’s application for reconsideration was dismissed.

sinenhlanhla.masilela@iol.co.za

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