November 2017

20Nov

South Africa. SAA: no pension money for bail-out

The Congress of SA Trade Unions (Cosatu) will go on a national strike if funds from the Public Investment Corporation (PIC) are used to bail out the ailing SAA, parliament heard on Friday. The federation was presenting its submission to the Standing Committee on Appropriations, detailing its concerns about the airline and its 10 000 workers. Last month, the PIC said it was not ruling out the possibility of bailing out the embattled SAA, after it received cash injections from the...

November 20, 2017
News, Slider
Read more...
17Nov

South Africa. Thousands of Transnet pensioners pin hopes on Constitutional Court

About 60‚000 Transnet pensioners have pinned their hopes on the Constitutional Court as they seek to proceed with a class action to seek billions from two pension funds. On Thursday‚ the court heard their appeal against a Pretoria High Court order from last year. Transnet pension fund recipients brought a lawsuit against the Transport Pension Fund and the Transnet Second Defined Benefit Fund and Transnet in the High Court last year. The pensioners wanted the High Court to declare that the...

November 17, 2017
News, Slider
Read more...
15Nov

South Africa. Government pension fund says it is ‘over-exposed’ to country’s economy

The Government Employees Pension Fund (GEPF) is “over-exposed” to the South African economy and this needs to be addressed, says Abel Sithole, the fund’s principal executive officer. The GEPF has had an exposure of close to R500bn in local bonds issued by government and state-owned entities (SOEs), as at the end of March 2017, Parliament heard on Tuesday. According to a written reply to questions posed by members of the standing committee on finance, the GEPF said as at the end...

November 15, 2017
News, Slider
Read more...
01Nov

South Africa’s State Pension Fund Preparing for National Downgrade

South Africa’s main government workers’ pension fund is seeking permission to invest more cash in international assets to protect against the impact of a possible downgrade of the country’s local-currency debt to junk status. The Government Employees Pension Fund is in talks with Finance Minister Malusi Gigaba about easing its investment criteria to include more foreign bonds and equities, Abel Sithole, principal executive officer, told reporters in Johannesburg on Tuesday. The GEPF currently has 1 percent of its 1.7 trillion...

November 1, 2017
News, Slider
Read more...

October 2017

24Oct

South Africa. Gigaba asked not to use government pension fund to bail out SAA

The DA-run Western Cape government has voiced its opposition to the use of public sector workers' pension funds to bail out South African Airways. Finance MEC Ivan Meyer said he had written to Finance Minister Malusi Gigaba to register his opposition to such plans. "I cannot support any decision that puts the pensions of public sector workers at risk‚" said Meyer. He said he had previously spoke against the proposal at the budget council of last month. "We cannot allow any...

October 24, 2017
News, Slider
Read more...
20Oct

Politics ensnares South Africa’s biggest asset manager

THE rot in South African politics, which has eaten away at state companies, is spreading. This week McKinsey, a consultancy, apologised for the “distress” it had caused the South African people. Political mud had already drowned Bell Pottinger, a British public-relations firm, and forced resignations at KPMG, an auditor. So the shenanigans at the government-owned Public Investment Corporation (PIC), have set off alarm bells. One concern is an apparent attempt to oust Dan Matjila, its boss. A linked worry...

October 20, 2017
News, Slider
Read more...
11Oct

South Africa. PIC looting concerns raise red flags for proposed state pension fund

Concerns that politicians view the Public Investment Corporation (PIC) as a cash cow will loom large over discussions to establish an overarching pension fund for South Africa. The new fund wants to consolidate the more than 5 000 public and private retirement funds into one giant mandatory institution, possibly under government control. The new centralised retirement fund or National Social Security Fund (NSSF) will centralise current retirement funds estimated to be worth R3trn. It aims to force South Africans to save for retirement,...

October 11, 2017
News, Slider
Read more...
09Oct

South Africa’s Fedusa wants to review PIC investments

South African labour federation Fedusa said on Saturday it would consult rival federations over withdrawing an investment mandate the workers’ pension fund has with one of the continent’s largest asset managers, the Public Investment Corporation (PIC). The PIC manages South African government employee retirement funds and has been in the spotlight recently after reports the finance ministry requested money from the pension fund to bail out struggling state firms. Finance Minister Malusi Gigaba has denied making such a request. Gigaba on...

October 9, 2017
News, Slider
Read more...
06Oct

South Africa’s Gigaba wants concerns over irregularities at state pension fund probed

South Africa Finance Minister Malusi Gigaba on Friday asked government pension fund Public Investment Corporation (PIC) to investigate concerns of irregularities at the asset manager to ensure transparency at the institutions. The PIC has been in the spotlight in recent weeks after reports that the finance ministry had requested money from the pension fund to bail out struggling state firms. Gigaba has denied making such a request. “We need to assure pension holders that those with political or economic power will...

October 6, 2017
News, Slider
Read more...

September 2017

28Sep

South Africa’s $143b pension fund safe from state abuse, says minister

Finance Minister Malusi Gigaba on Wednesday assured South Africans that funds in the hands of the Public Investment Corporation (PIC) are safe, contrary to allegations that his office is considering tapping into US$143 billion of state pension funds to finance failing state-owned firms.”I want to assure all South Africans, and every pension holder that their pensions are safe and there is absolutely no attempt to dig into their pensions for reasons that are unscrupulous,” Gigaba said. The minister’s assurance was...

September 28, 2017
News, Slider
Read more...