The Special Investigating Unit (SIU) has moved to prevent a former Greater Kokstad Local Municipality official from accessing more than R2.7 million in pension benefits amid allegations that he used his position to benefit a company linked to him.
The Special Tribunal has granted an interim preservation order stopping the KwaZulu-Natal Joint Municipal Pension Fund from releasing R2,768,021.42 to former municipal IT manager Yaw Owusu-Boakye.
The SIU alleges Owusu-Boakye was the beneficial owner of Obytech Solutions, which secured a three-year software licence renewal contract from the municipality worth R5.27 million.
According to the investigation, Owusu-Boakye allegedly interfered with the procurement process and made fraudulent representations in the company’s bid documents to secure the contract.
The municipality subsequently paid Obytech Solutions more than R5.27 million in three instalments between March 2023 and January 2025.
The SIU says its investigation found that the municipality received little or no value for money, with alleged non-delivery amounting to about R3.46 million.
Investigators also found that Owusu-Boakye was a signatory to the company’s bank account and allegedly exercised sole control over the funds.
The former official resigned in June 2025, after the SIU investigation had commenced.
The SIU is now asking the Special Tribunal to set aside the municipality’s decision to award the contract to Obytech Solutions and to order the company to repay profits allegedly obtained from the tender.
The preservation order is intended to prevent the pension benefits from being transferred or otherwise dealt with while the SIU pursues recovery proceedings.
The investigation forms part of a broader probe into tenders awarded by Greater Kokstad Local Municipality under Proclamation 244 of 2025.
The SIU says evidence of possible criminal conduct is also referred to the National Prosecuting Authority for consideration.
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