Lessons from Mabuza Case: Undissolved Customary Marriages and Pension Rights
The Mpumalanga High Court has stepped in to halt the release of former Deputy President David Mabuza’s R44.7 million pension fund. The court granted an interdict preventing Alexander Forbes, the fund administrator, from paying the money to Mabuza’s widow, Patience Mnisi, until a family dispute over entitlement is resolved. The urgent application was brought by Mabuza’s daughter, Tamara Silinda, and her mother, Emunah Silinda, who claims she was Mabuza’s customary law wife. They argued that they are financially dependent on the estate and requested specific amounts for tuition fees and monthly support.
The court expressed concern about Alexander Forbes’s conduct, criticising the fund for being reactive rather than proactive in handling the dispute. Importantly, the judge emphasised that the pension fund is protected under Section 37C of the Pension Funds Act, which requires that benefits be preserved until all legitimate dependants are identified and competing claims resolved.
Although the judge questioned the applicants’ immediate entitlement to the amounts they claimed, the court froze the fund and ordered Alexander Forbes to explain its policies and to pay the costs of the interdict application. This ruling underscores the legal complexities that arise when questions of customary marriage, succession, and pension benefits collide.
Key Takeaways for Clients
1. Pension Benefits after Death
Pension benefits do not automatically pass to the nominated beneficiary. Section 37C of the Pension Funds Act obliges the fund to identify and consider all legal dependants before making any payout. This safeguard protects dependants but often delays payment when there is a dispute.
1. Pension Benefits after Death
Pension benefits are not automatically paid to the nominated beneficiary. Under Section 37C of the Pension Funds Act, the fund must identify and consider all legal dependants and their needs before making any distribution. This protection often delays payment when there is a dispute, but it ensures fairness to all dependants.
2. Preserving Funds in a Dispute
Courts can grant an interdict to prevent pension benefits from being paid out while a dispute is pending. This protects the fund and all potential claimants until the court determines who is entitled to receive the benefits. Acting quickly to secure an interdict is often crucial.
3. Importance of Proper Documentation
Anyone making a claim against a deceased person’s pension must provide clear evidence of their relationship with the deceased and proof of financial dependence. Even legitimate claims can fail if there is insufficient documentation.
4. Role of Pension Administrators
Pension administrators have a legal duty to act fairly and proactively when there are competing claims. Failure to do so can expose them to court criticism and even cost orders, as demonstrated in this case.
Families should prioritise keeping beneficiary nominations and records up to date to reduce the risk of disputes after death. Those who believe they have a claim against a deceased’s pension benefits should seek legal advice as soon as possible. Early action can help preserve their rights, prevent funds from being released prematurely, and ensure that they gather the necessary evidence to support their claims.