Key points
- Tribunal overturned the release of Sbiya’s pension benefits.
- Found the Adjudicator bypassed trustee authority.
- Case sent back for proper review.
The Financial Services Tribunal has set aside a determination by the Pension Funds Adjudicator concerning the pension withdrawal benefits of former Edward Snell & Company employee, Mmangaliso Bhekumuzi Sbiya.
The ruling, issued on 23 June 2025, directs that the matter be remitted for proper adjudication following due process.
Sbiya was dismissed in November 2023 following allegations of serious misconduct involving fraud and theft of company stock. He was employed with the applicant from 3 May 2010 to 28 November 2023 when he was dismissed. By virtue of his employment, he was a member of the fund.
A case of gross misconduct had been opened against Sbiya for the alleged integral role he played in alleged fraudulent removal and distribution of company stock during 2022 and 2023. A disciplinary hearing was held on 24 November 2024. Sbiya was dismissed because of this alleged involvement in fraudulent conduct.
When he later sought to access his withdrawal benefits from the NBC Umbrella Retirement Fund, his employer requested that the benefits be withheld pending investigation.
In October 2024, the adjudicator ruled in favour of Sbiya, instructing the fund to release the benefits. Edward Snell & Company appealed, contending that the adjudicator had overstepped her mandate by substituting her own discretion for that of the Fund’s trustees.
Delayed legal response raises fairness concerns
During a hearing on 12 May 2025, the Fund's representative, one Mr Van Zyl, highlighted that a critical response from Sbiya’s attorneys, dated 4 July 2024, had not reached the fund or tribunal until January 2025. This delay, according to the tribunal, resulted in an incomplete consideration of evidence and undermined the Adjudicator’s ruling.
Citing established case law, the tribunal emphasised that benefit-withholding decisions must follow proper trustee deliberation and afford affected members a fair opportunity to respond. The absence of such a process rendered the initial ruling premature.
The tribunal concluded that the pension fund must now exercise its discretion in full, considering Sbiya’s submission before the matter can be properly decided.
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