Today's Labour News

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GEPFBusinessLive reports that the Government Employees Pension Fund (GEPF) has written off its R4.3bn investment in Steinhoff's empowerment shareholder, the Lancaster Group.  

Chair of the GEPF board of trustees, Renosi Mokate, said in her annual report statement that this was directly linked to the collapse of the Steinhoff share price.  As at end-March 2017, the GEPF, through the PIC, owned about R28bn in Steinhoff International Holdings — about 10% of the company and 1% of the total assets of the GEPF.  The Steinhoff share price collapsed in December 2017 after the announcement that accounting irregularities were being investigated.  The GEPF’s annual report for 2017-2018, tabled in Parliament on Monday, also indicated in its list of impairments that the R1bn loan and investments in preference shares in Iqbal Surve's Sekunjalo Investments and Independent News and Media SA (INMSA) had been written off.  This was because of failure to honour the payment obligations under the transaction agreements.  Other write-offs were the R375m investment in VBS, which is under liquidation, and R492m in Afgri Poultry.  The PIC’s investment in Independent Media was controversial since its inception as there had been much doubt over whether it would yield a return for the GEPF.

  • In the above regard, read the full original report by Linda Ensor at BusinessLive

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