A pension fund administrator is pursuing high-flying businessman and socialite Leeroy Sidambe for allegedly failing to pay over his workers' pension contributions which run into millions.
Sidambe has missed making monthly payments by more than 90 months for his 154 employees. Sidambe's company, Sakhile Ezweni Group, was among 5,430 worst defaulting firms in nonpayment flagged by the Financial Sector Conduct Authority (FSCA) last year. These companies collectively owed about R7bn to retirement funds. According to the FSCA, Sakhile Ezweni Group was behind by 91 months as at April 2023. Sidambe solely owns the company.
The Private Security Sector Provident Fund (PSSPF) is now assisting some of Sidambe's employees who have laid complaints with the fund to apply for a writ of execution against Sidambe's property to recoup the money which has accumulated interest.
Sowetan understands that Sidambe owes the fund more than R4m in unpaid worker contributions.
Failure to pay over contributions is a criminal offence in terms of the Pension Fund Act (PFA). The arrears owed by employers have an impact on how much pension the workers receive when they retire or change jobs.
"As much as legislation permits the fund to open criminal cases, the trustees handed over a number of non-compliant employers to the fund's attorneys for the recovery of outstanding amounts, which is an ongoing process," said PSSPF management this week.
Sidambe told Sowetan the allegations against him were baseless and were from people who wanted to tarnish his name. "I have evidence that I've been paying my workers salaries including pensions," he said, adding that he would produce evidence to Sowetan. He, however, failed to honour a scheduled meeting to share the information. He also did not respond to follow-up WhatsApp messages.
Sidambe, who is known for flaunting his lavish lifestyle and for dating a social media influencer, has been paying haphazardly since joining the fund in 2015. His company has been awarded two security contracts by Sassa totalling R137m.
The fund said it has received a total of 112 complaints between September 2020 and September this year from employees from Sakhile Ezweni Group. Other complaints on the nonpayment of pension contributions were also laid with the Pension Fund Adjudicator.
The fund said it had not been able to reach Sidambe.
"The employer does not respond to emails or correspondence from our client liaison officers," it said.
Sidambe's employees, who are security guards, told Sowetan that their salaries have not been paid regularly and that they were short of some work tools including uniforms and stationery such as occurrent books which guards use to record incidents during their shifts .
"I've been getting R2,500 per month since April last year when I should be getting paid R7,300. In July we were not paid at all," said a guard.
Another employee based in Gauteng told Sowetan he was concerned mostly about his pension. “Some of our colleagues would find out what they have been contributing monthly doesn’t match the pension they get when they leave the employment.”
The fund said that once complaints are lodged with the Adjudicator, a determination is issued against the employer to pay outstanding contributions. In the event the employer does not comply, the employee can apply for a writ of execution against the property of the employer.
"Individual determinations obtained by the members are enforced by the employees themselves, however, the fund is busy with the process outlined above to lodge the complaint on behalf of the members so that it can enforce the order on behalf of all the employees," it said.
According to the fund, if found guilty, the responsible person of the company or its directors may be liable on conviction to a fine not exceeding R10m or to imprisonment for a period not exceeding 10 years or both.
Pension Fund Adjudicator CEO Muvhango Lukhaimane has received 99 complaints from Leeroy Sidambe’s employees since 2022.
The complaints relate to Sidambe’s failure to register the workers as members of the Private Security Sector Provident Fund (PSSPF) and failure to pay contributions to the fund.
His security company, Sakhile Ezweni, managed to secure two contracts to guard Sassa offices in Limpopo for more than two years, ending in March 2025 and Gauteng (October 2021 to September 2024), with a total value of R137m, Sassa spokesperson Paseka Letsatsi confirmed.
He said Sassa were not aware of the company’s non-compliance. He said they were willing to work with the fund and would provide any information it may require from Sassa.
Lukhaimane said her organisation and the Financial Sector Conduct Authority (FSCA) were not empowered by the Pension Fund Act to open criminal cases against defaulting employers. “It is the board of the fund that must do that, in terms of the act, as the creditor,” she said.
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