Today's Labour News

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psaFin24 reports that the ANC’s commitment in its general election manifesto to investigating prescribed pension fund assets has public sector unions and financial institutions nervous that the party wants to use pension funds to feed Eskom and other troubled state-owned entities.  

The manifesto indicates:  "The ANC will mobilise funds within a regulatory framework for socially productive investments – including housing, infrastructure for social and economic development and township and village economy – and job creation, while considering the risk profiles of the affected entities."  Ivan Fredericks of the Public Servants Association (PSA) said they would soon have a meeting with the Federation of Unions of SA (Fedusa) where the matter of public servants’ pensions would be on the agenda.  "The ANC is mentioning that they will approach the GEPF (Government Employees Pension Fund) to use public service money from the pension to assist the country’s economy.  We do not want to make assumptions of what they want to do before these bodies are approached formally," said Fredericks.  He added said the PSA had not backed off from its demand of union representation on the board of the Public Investment Corporation (PIC), which invests the GEPF’s funds.  Albert Botha of Ashburton Investments commented that prescribed assets interfered with the capital allocation function of markets, distorting asset prices and allocating capital to organisations that might not necessarily deserve the amount of capital that prescription would give them access to.

  • Read Khulekani Magubane’s report on this matter in full at Fin24
  • Read too, It’s not on to use pensions to bail out state, at Mail & Guardian

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