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Cape Town - FedGroup Beneficiary Fund Administrators is pledging R1m to assist the 500 fomer mineworkers and other beneficiaries in recovering their millions from Fidentia, CEO John Field said.
“FedGroup has been in the Beneficiary Fund
industry for the past 25 years. We know how important monthly payments are and
how not making payments threaten basic needs such as food, shelter and
education. The 500 miners who lost millions continue to struggle to pay for
food and shelter and deserve a further investigation.
"They cannot afford to get further advice, so we are pledging seed money to kickstart the process and pay for forensic, legal and accounting fees,” said Field.
Field said the R1m will be administered pro bono in a trust held by The Fidelity Trust Company and the group will appoint independent trustees.
“It is important that the miners know that safeguards will be put in place to ensure that the trust is administered properly and funds utilised appropriately,” he said.
Field believes that the right place for these trustees to come from would be the miners’ unions or guardians of their pension funds.
“I urge willing individuals to come forward who can assist FedGroup in minimising the hardship of these people. These trustees should realise that they are working for the community and will receive no fees for their service,” said Field.
Field stressed that the pledge should not be seen as an attack on Fidentia, nor as support for J Arthur Brown. “This pledge is about looking after the vulnerable people. It is our social responsibility to do so,” he said.
With regards to the Financial Services Board’s (FSB's) role, Field said that they would assist the group in working through this maze to find the best possible outcome for the miners.
“Our pledge is just the start. We encourage businesses to step up and assist us in helping the poorest of the poor”.
Sentence disappointing
Former Fidentia boss J Arthur Brown was fined R150 000 and a given suspended prison sentence on Wednesday for two fraud convictions, after he admitted to misrepresentations he made regarding investments entrusted to him.
Handing down sentence, Western Cape High Court Judge Anton Veldhuizen said a R75 000 fine applied for each fraud count.
He was also given 18 months in jail for each count, suspended for four years on condition he not be convicted for fraud again.
The FSB said the R150 000 fine imposed on Brown was disappointing as it would not deter white collar crime.
"The FSB believes that the fine of R150 000 or 36 months in prison does not acknowledge the extent of the damage caused by Mr Brown’s actions," spokesperson Tembisa Marele said.
The National Union of Mineworkers echoed these sentiments.
"The union is highly disappointed at
the light sentence and the discrepancies in judgments passed by our justice
system," spokesperson Lesiba Seshoka said.
- Additional reporting: Sapa
