FSCA withdraws SA Army Foundation licence, fines officials R44.7m

The Financial Sector Conduct Authority has withdrawn the South African Army Foundation’s authorisation to operate as a financial services provider, imposed combined administrative penalties of R44.7 million on two senior officials and barred them from the financial sector for 30 years.

The FSCA said its action follows an investigation conducted under section 135 of the Financial Sector Regulation Act.

The Foundation reportedly receives millions of rands every month through deductions from the salaries of serving SANDF members. These contributions are meant to provide funeral cover, insurance, and other benefits to protect soldiers’ families.

In a statement on 6 May 2026, the Authority said it had found that, between February 2016 and March 2022, the Foundation – through Maria Rosa Barros and Angel Errol Ramphele – engaged in unlawful practices, including commingling client funds, submitting misleading regulatory reports, failing to exercise proper care over funds, and making significant unauthorised payments from the bank account of the South African National Defence Force Group Life Insurance Scheme.

Barros was fined R20.7m and Ramphele R24m. The FSCA also debarred both individuals from rendering financial services for 30 years.

The FSCA’s statement said members’ premiums for financial products were not affected, and it had not identified any instances where premiums were not paid to the relevant insurers. The FSCA said the unauthorised payments were mostly funded by an additional monthly administration fee collected from members.

The May enforcement action follows an earlier FSCA statement on 3 March, when the authority confirmed that it had already concluded its investigation into the Army Foundation and two senior officials, after a referral from the Specialised Commercial Crimes Unit of the National Prosecuting Authority (NPA). At that stage, the FSCA said it was still considering the appropriate enforcement action.

The matter first drew public attention in March after City Press reported that forensic investigators had allegedly uncovered about R50m in irregular or unauthorised transactions involving the Foundation. The newspaper reported allegations that money sourced from soldiers’ compulsory monthly deductions was used to finance expenses linked to senior military figures, including credit card spending. It also reported allegations of procurement irregularities and questionable payments uncovered during the forensic investigation.

The FSCA said it had also referred the information obtained during its investigation to the NPA and the Directorate of Priority Crime Investigation.