Fin24 reports that according to labour federation Cosatu, both public and private funds should be required to invest in government bonds for the development of the state, but there should be conditions attached to the investments to prevent looting and to ensure depositors were protected.  

This followed remarks by President Cyril Ramaphosa on prescribed assets during a question and answer session in the National Assembly on Thursday.  The president indicated that labour, particularly Cosatu, was supportive of the idea of using their assets or pensions to generate investment.  The term 'prescribed assets' refers to a policy where the state obliges institutions such as pension funds and insurance companies to invest a part of their funds in state institutions or bonds.  "Cosatu in principle supports investments being required to invest a certain portion of their funds in government bonds that can then be utilised to support the funding of certain public goods, for example infrastructure, tertiary education, health, among others," Cosatu’s parliamentary coordinator Matthew Parks remarked on Friday.  However, he added, there must be a "healthy, above inflation return" on investments to protect the depositors.  "It (the investment) cannot be used to subsidise or bail out corruption and mismanagement," he also indicated.

• Read the full original of the above report by Lameez Omarjee at Fin24
• Read too, South Africa pensioners reportedly oppose prescribed assets plan, at Moneyweb

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