We have doubts: GNU stance on pensions remains to be seen
THE idea regarding investments by pension funds in government projects recently raised by Trade, Industry and Competition Deputy Mnister Zuko Godlimpi is not a new one.
The same ideas have been expressed time and time again by the President and others.
The following quotation is a repetition of the false belief that funds belonging to members of pension funds are freely available for the government: "Relying on the total endowment that we have that include the pensions that we have. The Thai include pensions that the country has."
The Association for Monitoring and Advocacy of Government Pensions (AMAGP) cannot speak for other pension funds, but money belonging to the GEPF should be used for its sustainability and growth and not for government adventures and gambling on projects like Isibaya Investments "underperforming" at a rate of more than 40% .
I do not even refer to the billions of the Government Employees Pension Fund (GEPF) caught up in badly managed and bankrupt State Owned Enterprises like Eskom, the Land Bank, Denel and others.
The changes will presumably and specifically allow the GEPF to invest in the business of the employer.
We at AMAGP are well aware of the risks contained in such investments. We agree with Old Mutual's view that a government should create conditions for an attractive return on these investments.
The President had similar views at the time of the ruling government of the ANC. However, with that party clinging to its socialist economy policy its attempts were never successful.
Whether matters will be different under the GNU remains to be seen. With an ANC deputy minister as chairman of the Public Investment Corporation, we have our doubts.