Fidentia boss J Arthur Brown lashed out at critics in the March edition of noseweek, accusing Frans Mahlangu, the principal officer of the Mineworkers Provident Fund (MWPF), of accepting bribes.
The media has celebrated Mahlangu as a whistle-blower for raising concerns about Fidentia Asset Management soon after it began to manage about R800-million for the MWPF in its Living Hands Trust. The Financial Services Board has accused Fidentia of misappropriating about R700-million of the total R1,2-billion in Living Hands.
Brown alleges that Mahlangu is bent on revenge because Fidentia disrupted Mahlangu’s cosy relationship with former asset management company Matco.
The Mail & Guardian spoke to Mahlangu about Brown’s accusations.
Brown denies there were ever incomplete or late payments to Living Hands beneficiaries. You have reported that beneficiaries complained as early as 2004 about late payments. What is your response?
It is just denialism. He is really good at denying things. He also insists that there is no money shortage [at Living Hands]. You can argue with Arthur Brown, but he says the same thing. He doesn’t ever come with proof to the contrary.
Brown claims that Matco had been paying kickbacks to the fund’s pension administration company Lekana. Are you aware of any payments between Matco and Lekana or rumours of such payments?
I don’t know anything about Matco, but what I’ve seen is an agreement signed by Lekana for a commission from Living Hands worth 0,5% of R800-million. If Lekana managed to get a commission from Living Hands, it might have gotten commissions earlier.
Brown says that Matco also paid money to the MWPF and that you benefited from ‘Matco’s largessâ€.
That can’t happen. The MWPF has a bank account, but it is monitored and audited. Each time a cheque comes in, our auditors can see. They would freak if Matco paid money in and [they would] ask why Matco was paying into our account.
Brown alleges that Matco paid for your car, house and children’s school fees. He accuses you of running a fraudulent claims business on the side. How do you respond to these claims?
That’s hogwash. The car is a company car belonging to the Mineworkers Provident Fund. If the company bought the car through Matco, I don’t know. Anyone who says that Matco bought me a car must show me that car.
For the house, you can get proof from me or from the bank. For the school, I can give you my cheque [stubs] for whatever day you want.
Brown says that working out of Lekana’s office compromised your independence.
How so? All of our members go there to be paid in that office. Where should I be? When members have problems, I’m available in the place where I’ve always been.
Why would Brown target you in making such allegations?
I haven’t seen the article but I hear that he touches on me, the [Financial Services Board (FSB)] and [Personal Finance editor] Bruce Cameron. He’s targeting people with much more information against him. I’ve dealt with his companies, Cameron has investigated him and the FSB put Fidentia under curatorship.
Brown talks about files. Where are the files? Bruce quotes [former Fidentia director Rudi] Bam in his first article and says Bam came to me and told me of the silly business in Fidentia. Brown says I’ve got a file but he doesn’t ever quote anything from it.