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Ex-Kheis municipal manager arrested over huge pension shortfall

Lance Fredericks|Published

Former Kheis municipal manager Joseph Floyd Leeuw was arrested by the Hawks for allegedly failing to transfer pension deductions, resulting in R8.5 million in interest penalties.

Image: File

NORTHERN CAPE – The Directorate for Priority Crime Investigation (Hawks) has arrested the former municipal manager of Kheis Local Municipality, Mr Joseph Floyd Leeuw (58), on charges relating to the alleged non-payment of pension contributions totalling several million rand.

The Hawks’ Serious Commercial Crime Investigation team executed a J50 warrant of arrest in Groblershoop during the early hours of Friday, 27 June 2025.

Leeuw faces 30 counts of contravening Section 13A and related sub-sections of the Pension Funds Act 24 of 1956. It is alleged that between October 2019 and June 2022, he failed to pay over employee pension deductions to the Consolidated Retirement Pension Fund (CFR).

As a result of the alleged non-payment, the outstanding amount reportedly ballooned to R8,545,980 due to accrued late payment interest.

Leeuw made a brief appearance before the Groblershoop Magistrate’s Court shortly after his arrest. He was granted R4,000 bail, and the case has been postponed to 5 August 2025 for further proceedings.