Dischord over Cogta’s new Amakhosi medical aid and pension fund

There is disagreement in the KwaZulu-Natal Legislature over the department of co-operative governance and traditional affairs’ decision to give pension and medical aid benefits to traditional leaders in the province. The IFP in the Cogta portfolio committee has publicly distanced itself from criticism of the decision by the committee chairperson Marlaine Nair of the DA.

A new medical aid and pension fund for Amakhosi proposed by the KZN co-operative governance and traditional affairs MEC Rev Thulasizwe Buthelezi has caused a stir in the province.
A new medical aid and pension fund for Amakhosi proposed by the KZN co-operative governance and traditional affairs MEC Rev Thulasizwe Buthelezi has caused a stir in the province. (SANDILE NDLOVU)

There is disagreement in the KwaZulu-Natal Legislature over the department of co-operative governance and traditional affairs’ decision to give pension and medical aid benefits to traditional leaders in the province.

The IFP in the Cogta portfolio committee has publicly distanced itself from criticism of the decision by the committee chairperson Marlaine Nair of the DA.

Cogta MEC Thulasizwe Buthelezi announced on Tuesday the new Amakhosi Pension Fund had been approved by the Financial Sector Conduct Authority (FSCA) and it was now waiting for a final go-ahead from minister Velenkosi Hlabisa.

The initiative, mooted by his department in partnership with Standard Bank, will see amakhosi and izinduna in the province have access to medical benefits as well as pension on retirement from active service.

However, Nair issued a statement on Wednesday expressing the committee’s concerns over the funding and sustainability of the scheme.

She acknowledged the committee supported measures to ensure the dignity and wellbeing of traditional leaders in retirement but questioned the department’s timing of launching a new initiative.

“The approval of new Amakhosi Pension Fund comes at a time when CoGTA has lost its clean audit, failed to pay creditors on time, and municipalities across KZN are collapsing under financial strain and poor service delivery,” she said.

She also questioned the department’s prioritisation and resource management, noting it was allocating resources to the scheme before addressing existing challenges at its disposal.

“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.”

Nair also raised concerns about transparency, sustainability and the lack of a clear business case for the pension and medical scheme.

She said the committee respected the amakhosi and supports their welfare but warned that such investment should not overshadow the need to restore municipal functionality and rebuild public trust in local governance.

“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.”

The IFP, however, hit back on Thursday, accusing Nair of speaking without consulting other members of the portfolio committee.

IFP MPL and committee spokesperson Otto Kunene said the party did not agree with Nair’s statement and reiterated their support for the decision to extend benefits to traditional leaders.

“Rejecting the extension of these benefits to amakhosi reflects a shallow understanding of the critical role they play in the governance ecosystem of our country,” he said.

“It would have been preferable if the chairperson had consulted with us before issuing such a statement, to determine whether this view is shared by the political parties serving on this portfolio committee.”

He praised Buthelezi for initiating the fund, arguing that traditional leaders deserved pension and medical aid benefits as much as other leaders.

“It is important to note that if membrs of parliament, legislatures and councillors receive such benefits, there is no justification for withholding the same from amakhosi.”

Buthelezi previously confirmed to TimesLIVE that the fund will work as a joint contribution scheme, with both KwaZulu-Natal Cogta and the traditional leaders contributing.

A special meeting is expected where Buthelezi will answer questions from the committee about how the pension fund will work.

TimesLIVE

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