SIU freezes R2.7 million pension linked to R5.27 million municipal tender

The Special Investigating Unit (SIU) has secured an interim preservation order from the Special Tribunal preventing the KwaZulu-Natal Joint Municipal Pension Fund (NJMPF) from disbursing R2,768,021.42 in pension benefits to former Greater Kokstad Local Municipality IT manager Yaw Owusu-Boakye.

The order follows an SIU investigation into a R5.27 million software licence renewal tender awarded by the municipality to Obytech Solutions (Pty) Ltd.

In a statement on Wednesday the SIU said that Owusu-Boakye was the beneficial owner of Obytech Solutions and allegedly manipulated the procurement process to secure the appointment of his company through fraudulent misrepresentations in its bid documents.

The municipality made three payments to the company under the three-year software licence renewal contract:

• R1,227,875.55 on 5 March 2023;

• R2,815,652.74 on 26 July 2023; and

• R1,227,875.55 on 24 January 2025.

The payments totalled R5,271,403.84.

The SIU said its investigation further established that Owusu-Boakye was a signatory to Obytech Solutions' bank account and exercised sole control over the funds.

Investigators found that the municipality allegedly received little or no value for money from the contract, with R3,465,835 identified as non-delivery. The SIU alleges that proceeds were used to fund personal expenses and a lifestyle.

Owusu-Boakye resigned from the municipality in June 2025, after the SIU investigation had begun.

The preservation order prevents the NJMPF from releasing the pension benefits or taking any action that could reduce or prejudice the value of the funds.

The SIU also approached the Special Tribunal on 31 March 2026, seeking to have the municipality's decision to appoint Obytech Solutions reviewed and set aside. It is further seeking an order compelling the company to repay profits allegedly derived from the tender.

The investigation was authorised under Proclamation 244 of 2025, which covers two tenders at Greater Kokstad Local Municipality, including the software licence contract and a separate contract for customer care and IT service desk solutions.

The SIU said the preservation order forms part of its efforts to recover financial losses suffered by state institutions as a result of alleged corruption, fraud and maladministration.

Evidence pointing to possible criminal conduct is also referred to the National Prosecuting Authority (NPA) for consideration and further action.