The Public Investment Corporation (PIC) issued a statement this week refuting claims circulating on social media that the Government Employees Pension Fund (GEPF) is facing insolvency as a result of an alleged £158 billion (R3.3 trillion) legal claim against its portfolio of assets, which are managed by the PIC.
According to the statement, it is alleged that Nedbank Private Wealth, a subsidiary of Nedbank, which was previously associated with Old Mutual, has been engaged in bad business practices in the United Kingdom and the United States, which will give rise to the claimed financial liability.
The PIC said that Nedbank and Old Mutual refute these allegations.
The PIC, on behalf the GEPF, is an investor in the shares of Old Mutual and Nedbank.
“It is solely upon this fact that the PIC and the GEPF are connected to the allegations and the conclusions reached. Old Mutual and Nedbank are limited liability companies. Therefore, the PIC’s exposure, acting on behalf of the GEPF, to any claims against Old Mutual and Nedbank, assuming they are legitimate, is limited to their shareholding only.”
It is alleged that all South African state pensions will cease to exist as a result of such the £158bn claim against the GEPF.
“Complaints detailing these allegations have been submitted to several regulatory and investigative bodies in South Africa, the UK and USA. As far as the PIC is aware, none of the regulatory and investigative bodies have confirmed the veracity of these allegations. The FSCA, after soliciting and obtaining information regarding the complaint, decided to close the matter. This indicates that there is no merit to these allegations,” the PIC said.
Moneyweb reported that United Democratic Movement president Bantu Holomisa sent a letter to Finance Minister Enoch Godongwana, PIC chief executive Abel Sithole, and the GEPF’s principal executive officer, Musa Mabesa, asking them to verify the allegations.
Holomisa’s letter, which was dated 9 January 2023, appends emails from an individual who says he is leading an investigation in the UK finalising heads of claim against a South African bank linked to the “largest listing fraud in the history of the London Stock Exchange”.
Another scandal ANC useless
Gatfol
Tell me is it true to make a loan on my pension
You are only permitted to borrow money from your pension fund if (a) the fund rules permit this, and (b) the loan is for housing-related purposes (to purchase a home or settle a loan in respect of a property you and/or your financial dependants live in).
My mother have been waiting for her pension fund from GEPF since January 2022. Nobody want to take any accountability on when the money will be paid. It’s sad.
As it stands the commission’s recommendations have not been addressed and l see it as an effort by PIC to divert attention away from it.
It does also not make sense that a bank or any other beneficiary should take such a stupid step like a dog biting it’s master.