Yasmin Bilal
A former Greater Kokstad Local Municipality IT manager has had more than R2.7 million in pension benefits frozen.
The action follows a Special Investigating Unit (SIU) investigation into a R5.27 million software tender.
The Special Tribunal granted an interim preservation order blocking the KwaZulu-Natal Joint Municipal Pension Fund from paying out R2,768,021.42 to Yaw Owusu-Boakye.
The investigation centres on a three-year software licence contract awarded by the municipality to Obytech Solutions (Pty) Ltd.
The SIU says Owusu-Boakye was the beneficial owner of the company while he was employed by the municipality.
Investigators allege that he manipulated the procurement process to ensure the company won the contract. They also found alleged false representations in its tender documents.
The municipality paid Obytech Solutions more than R5.27 million in three instalments.
The first payment of R1,227,875.55 was made in March 2023. A further R2,815,652.74 was paid in July that year.
The final payment of R1,227,875.55 was made in January 2025.
The SIU says its investigation found that the municipality received little or no value for some of the contracted services.
It put the value of the alleged non-delivery at R3,465,835. The unit further alleges that money from the contract was used for personal expenses and lifestyle costs.
Owusu-Boakye was a signatory on Obytech Solutions’ bank account. The SIU says he had sole control over the money held there.
He resigned from the municipality in June 2025, after the investigation had begun.
The SIU has since taken steps to challenge the tender itself.
In March this year, it approached the Special Tribunal to have the municipality’s decision to appoint Obytech Solutions reviewed and set aside.
It is also seeking the recovery of profits allegedly made through the contract.
The investigation forms part of a wider SIU probe into two tenders at Greater Kokstad Local Municipality.
The second investigation concerns a contract for customer care and IT service desk services.
The pension order is intended to protect funds that could potentially be used to recover losses if the SIU succeeds with its civil proceedings.
The SIU is empowered to bring civil cases before the Special Tribunal or High Court when its investigations uncover alleged corruption, fraud or maladministration.
Evidence pointing to possible criminal conduct can also be referred to the National Prosecuting Authority for further action.