Today's Labour News

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transnetlogo thumb100 City Press reports that Regiments Capital is suing the Transnet Second Defined Benefit Fund to recover lost fees and to possibly get reinstated as fund manager, after its three-year contract was cut short.  

This is despite Regiments having allegedly misappropriated at least R232m from Transnet pensioners to benefit Gupta-linked Trillian.  In a court application on Friday, Regiments demanded that its replacement Old Mutual be removed.  It wants a new tender to be put out, which would put Regiments back in the running for the job.  The details of Regiments and its offspring Trillian’s work at Transnet have been laid bare in the fund’s damages claim against both companies and their directors.  In its application, Regiments indicated that it would launch a counterclaim for the fees it lost by getting kicked out, 10 months after being appointed to manage the fund, on 30 September 2015.  Regiments’ contract gave it unusual freedom to invest in whatever it pleased and came with a steep management fee of over R300m per year.  The fund has been mired in controversy for years.  Transnet allegedly raided it in the early 2000s to fund operational needs.  Since then, it has been paying out controversially small pensions capped at 2%, meaning that they shrink every year after inflation.  

  • Read this report by Elaine Swanepoel and Dewald van Rensburg in full at City Press
  • Read too, Transnet se pensioenfondse glo besteel, at Netwerk24 (limit on access)

Get other news reports at the SA Labour News home page