Alexforbes has issued a statement following the interim order delivered by the Mpumalanga High Court on Tuesday in the ongoing dispute over the late former deputy president David Mabuza’s R44-million living annuity.

The case, brought by Emunah Silinda and Tamara Silinda, contests how the pension benefits should be distributed. The High Court issued an interim order preventing Alexforbes from paying any funds to Mabuza’s widow, Patience Mnisi, pending finalisation of Part B of the application, which will determine the allocation of the pension among all dependents.

In its response, Alexforbes said it respected the ruling but would review its legal options, particularly the cost order imposed against it, which the company described as “unjustified.” The firm stressed that it had complied fully with the court’s directions.

Alexforbes also clarified the distinction between pension funds and living annuities. It explained that Mabuza had transferred his pension from the Political Office-Bearers Pension Fund to a living annuity in early 2023. Unlike pension funds, which are regulated under Section 37C of the Pension Funds Act, living annuities fall under the Long-Term Insurance Act and the Income Tax Act.

According to Alexforbes, death benefits in a retirement fund require trustees to distribute them fairly among dependents and nominees, whereas living annuities are paid strictly according to the policyholder’s beneficiary nomination form and do not form part of the deceased’s estate.

The company emphasised that “the difference is critical,” as trustees’ discretion under Section 37C can delay payments and may not align with a member’s stated wishes.

Judge Johannes Roelofse instructed that the parties return to the registrar by 15 October to manage the next stage of proceedings.