Union concerned about retirement insurance

The retirement insurance industry needs to undergo a fundamental change, the National Education Health and Allied Workers’ Union (Nehawu) said on Friday.

“In the recent past there have been numerous disastrous instances where workers’ savings have been wilfully misused and even squandered,” said the union in a statement.

Nehawu said reports that Koni Media Holdings allegedly tried to use money from the Government Employees’ Pension Fund (GEPF) to finance a Johnnic takeover was an example of this misuse.

“This comes on the back of the recent move by the Public Investment Corporation [PIC], in acquiring and ‘warehousing’ equity on behalf of a preferred BEE [black economic empowerment] consortium bidding to acquire stakes in Telkom.”

The union said the role of the PIC and its investment policy need to be reviewed.

It said the Fidentia case—in which the company misappropriated more than R1-billion meant to fund payments to mineworkers’ widows and orphans—- exemplified the squandering of workers’ savings.

The role of asset managers also needs to be re-examined, said the union. “Workers’ savings entrusted to the GEPF and managed by the PIC and other private asset managers should not be used to further the narrow economic and political interests of the highly connected few.”—Sapa