SIU freezes former municipal IT manager’s pension over R5.27 million fraudulent software tender

The Special Investigating Unit has secured an interim preservation order freezing R2.7 million in pension benefits linked to former Greater Kokstad IT manager Yaw Owusu-Boakye.

Image: SIU

The Special Investigating Unit (SIU) has secured an interim preservation order freezing R2.7 million in pension benefits belonging to a former Greater Kokstad Local Municipality IT manager, amid allegations that he manipulated a R5.27 million software tender for his own benefit.

The Special Tribunal order prevents the KwaZulu-Natal Joint Municipal Pension Fund (NJMPF) from paying out R2,768,021.42 in pension benefits to former IT manager Yaw Owusu-Boakye.

SIU spokesperson Selby Makgotho said Owusu-Boakye was the beneficial owner of Obytech Solutions (Pty) Ltd, which secured a three-year contract from the municipality for the renewal of software licences.

According to the SIU, its investigation uncovered alleged irregularities in the procurement process that resulted in Obytech Solutions being appointed.

“The SIU investigation found that Owusu-Boakye allegedly manipulated the procurement process to secure the appointment of his company through fraudulent misrepresentations in its bid documents,” Makgotho said.

The municipality subsequently made three payments to Obytech Solutions in terms of the contract.

These included R1,227,875.55 paid on March 5, 2023, R2,815,652.74 on July 26, 2023, and another R1,227,875.55 on January 24, 2025.

The payments amounted to R5,271,403.84.

The SIU said its investigation also established that Owusu-Boakye was a signatory to Obytech Solutions’ bank account and exercised sole control over the money held in the account.

Pension fund interdicted

The investigation found that the municipality allegedly received little or no value for money from the services provided by Obytech Solutions.

The SIU identified alleged non-delivery amounting to R3,465,835.

It further alleged that proceeds from the contract were used to fund personal expenses and Owusu-Boakye's lifestyle.

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

The preservation order now prevents the pension fund from taking any action that could reduce or prejudice the value of his pension benefits.

The Tribunal order specifically interdicts the fund from doing “anything that may in any other way encumber or prejudice the value of the monies held or administered by it” in respect of the pension benefits.

SIU wants tender set aside

The pension freeze follows civil proceedings already instituted by the SIU over the tender.

“On March 31, 2026, the SIU launched an application before the Tribunal seeking to review and set aside the Greater Kokstad Local Municipality’s decision to appoint Obytech Solutions to provide the three-year software licence renewal services,” Makgotho said.

“The SIU is also seeking an order directing Obytech Solutions to repay the profits derived from the tender.”

The investigation forms part of a broader probe authorised under Proclamation 244 of 2025.

The proclamation empowers the SIU to investigate two tenders awarded by the Greater Kokstad Local Municipality, the software licence renewal contract and another contract for customer care and IT service desk solutions.

Efforts to recover public money

The SIU said freezing the pension benefits forms part of its efforts to ensure that those implicated in wrongdoing face consequences and that public money is recovered.

“The preservation order forms part of the SIU’s efforts to implement investigation outcomes and ensure consequence management, including the recovery of financial losses suffered by State institutions as a result of corruption, fraud and maladministration,” Makgotho said.

The SIU is empowered under the Special Investigating Units and Special Tribunals Act 74 of 1996 to institute civil proceedings in the High Court or Special Tribunal where wrongdoing is uncovered during its investigations.

It also refers evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for possible further action.

IOL News

Related Topics: