Iuze Mukube
Minister of Finance Ericah Shafudah has opposed a motion by a local microlender to be found in contempt of a court order that directed her to desist in interfering with the loading of new deductions onto the government’s Payroll Deduction Management System (PDMS).
The motion filed on 11 December by local microlender, Entrepo Finance requested the court to find the minister in contempt of a court order dated 28 November 2025.
Entrepo stated that the minister should file an affidavit on or before 15 December 2025 in which she details how she will implement a fully functional PDMS, with or without Avril Payroll Deduction Management (Pty) Ltd, to comply with the court order. Should she fail to do so, the court should find her in contempt of the court order.
The High Court order of 28 November directed the minister to desist from interfering in the loading of new deductions onto the PDMS and issuing instructions that no new deductions may be loaded onto the PDMS.
It further ordered for the continued operation of the system, with or without Avril, as of 17h00 on 29 August 2025, pending the determination of the matter.
Shafudah’s answered the affidavit by pointing out that the court order made clear instructions that the continued operation of the PDMS was authorised, with or without Avril.
Therefore, she stated Entrepo is to blame for any defect in the relief which was granted.
“I have no intention to and did not interfere in the loading of new deductions onto the PDMS. I have also not issued any instructions to anyone that no new deductions may be loaded onto the PDMS,” she stated.
She stated the government system is authorised under the executive director (ED), Michael Humavindu, in his capacity as the officer of the finance ministry.
She added that to her knowledge the ED has been working tirelessly, even before and after the court order, to facilitate the loading of new deductions from deduction code holders.
“I can state without fear of contradiction that the Entrepo’s inability to load new deductions is not because of me having interfered in the PDMS system or having given instruction that no new deductions may be loaded onto the PDMS,” she said.
She stated the inability stems from the fact that the agreement which the ministry had with Avril expired and was not renewed, adding that there was no court order authorising her to renew the agreement.
She stated that “the court order does not say that the agreement with Avril must be renewed and who must carry out the obligation to renew the agreement.”
She added that she cannot act unlawful as deductions for microloans is contrary to the prohibition contained in section 20(3) of the Payment System Management Act, 2023.
“Any special dispensation made by the court regarding Avril should be clear as there is considerable risk with continued deductions for microloans despite the prohibitions contained in the above provisions,” she said.
She stated that she is not in contempt of the court order because she has not taken any steps to interfere with the loading of new deductions nor has, she given any instructions that no new deductions be loaded onto the system.
She further stated that there was no basis for Entrepo to bring such an application to court because new deductions have a load time of about a month.
When a loan is approved, it takes about a month before the new deductions can be deducted from the salaries of the affected employees, she said.
She asked the court to dismiss the application or to struck it from the roll.
Photo: Heather Erdmann