The suggestion made last month by Ebrahim Patel, the Economic Development Minister, that private pension funds be used to promote development, appears to have been slapped down by Finance Minister Pravin Gordhan in a first public confrontation between the two over policy.
Dion George of the Democratic Alliance asked Gordhan in a Parliamentary question whether particular investment vehicles into which a percentage of pension fund assets should be invested have been designed. Giving a written reply on Monday, Gordhan said they have not. He also indicated that there is no need for such vehicles.
“Deep and liquid domestic financial markets, strengthened over the previous decade, currently ensure the availability of funding to finance government’s borrowing requirement,” Gordhan said.
He reinforced the point by adding that the government’s borrowing requirement has been determined through the due process prescribed in law. He plainly meant in the budget prepared by the finance minister.
“It is now being considered by Parliament,” Gordhan added. — I-Net Bridge