There is growing confusion over the plan by the KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs (Cogta) to offer pensions to Amakhosi.

The Cogta department and the Financial Sector Conduct Authority (FSCA) appear to be at odds over the plan. Cogta announced earlier this month it had received FSCA approval for the KZN COGTA Pension Fund for Amakhosi.

The department had said the structured savings mechanism was designed to support the social standing of amakhosi by providing them with financial resources upon retirement.

However, some days later, the FSCA said it had not received any application for the registration of this pension fund, nor had it reviewed or approved any such application. However, the FSCA confirmed that Amakhosi Wealth Management was authorised on August 21, 2025, to provide financial services in respect of: Long-term Insurance: Subcategory A and Friendly Society Benefits.

KZN Cogta MEC Thulasizwe Buthelezi, however, remains adamant that the pension fund was given the go-ahead. Addressing members of the Cogta committee recently, he said: “Chairperson and Honourable members, I am pleased to inform this committee that the KZN CoGTA Pension Fund for Amakhosi has been granted approval 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. We welcome the FSCA’s approval and describe it as a significant breakthrough in our ongoing efforts to provide long-term stability, financial security, and social protection for Amakhosi and their families.

“We are delighted by this development. In no time, the long-standing vision to liberate and empower the institution of traditional leadership, just like any other office-bearer, will be realised,” stated the MEC.

The Mercury has seen a confidential letter from the FSCA, dated October 7, which is titled “Confirmation of the Registration of the KZN Cogta Pension Fund. This letter serves as confirmation that a pension fund has been registered for the Amakhosi and Izinduna of KZN Cogta,” said the letter.

“In terms of the Pension Funds Act, 24 of 1956, and the Income Tax Act, 58 of 1962; Special Rules: Corporate Selection Umbrella Pension Fund – Cooperative Governance and Traditional Affairs KZN.

“Please note that the fund is registered under the name Cooperative Governance and Traditional Affairs KZN,” said the letter. It lists the Fund Registration Number and the date of registration. The Mercury contacted the FSCA for clarification, referencing the Fund Registration number.

In response, it said: “The registration number you are referring to is the registration of Corporate Governance & Traditional Affairs KZN as a participating employer in the Corporate Selection Umbrella Pension Fund. This means that the employees of Corporate Governance & Traditional Affairs KZN can contribute to the pension fund. No mention is made of Amakhosi in the rules or documentation that the FSCA has at its disposal.”

The plan to give pensions to Amakhosi has also caused tension within the Cogta committee. During a recent committee meeting, chairperson Marlaine Nair had to defend herself after coming under pressure from other members of the committee.

The other members of the committee had taken exception to an earlier statement Nair had sent out shortly after the proposal had been announced in which questions were raised about the affordability of the plan.

It was indicated during the meeting that the statement attributed to the committee had upset Amakhosi.

The other members of the committee distanced themselves from the statement and said they had not been consulted on it. The chair said it was incorrect to suggest that the statement undermined Amakhosi, adding that it was the job of the committee to ask difficult questions.

“I am willing to meet with traditional leaders and tell them about the ideas that we have that can change their lives. They (the ideas) can take them from being reliant on the government to unlock wealth for the future. The land they have has wealth that can be unlocked. Those are the ideas that we would like to bring to them; we have an obligation to make their lives better because they serve us,” Nair said.

THE MERCURY

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