Loading...
See More

Sanral: Questions over pension investment

May 03 2012 07:35 Sapa

Related Articles

Sanral raises R300m in bond auction

State pensions invested in e-toll debt

GEPF mulls investing $22bn outside SA

Report: E-tag money deducted

Outa: Govt must explore other options

Sanral respects e-toll judgment

 

Johannesburg - The Democratic Alliance on Wednesday requested Finance Minister Pravin Gordhan to shed light on an unguaranteed Sanral debt owned by government pensioners.

DA shadow minister of finance Tim Harris wrote to standing committee on finance chair Thaba Mufamadi and requested that Gordhan be summoned to brief the committee on the status of the SA National Road Agency Limited's debt, following the recent delay in the e-tolls.

In a statement Harris said a meeting of the finance committee revealed that 5% of the government employees pension fund’s (GEPF) bond holdings were made up of Sanral bonds.

However Arthur Moloto, chair of the fund’s board of trustees, on Wednesday confirmed only half of the R15.7bn worth of bonds have a government guarantee.

"This raises the question of government pensioners’ exposure to default risk associated with almost R8bn worth of their pensions," Harris said.

"Moloto maintains that the unguaranteed amount is subject to an implicit government guarantee, given that the state is the sole shareholder of Sanral, but whether National Treasury agrees is unclear."

He said the finance committee needed to establish government’s position on the unguaranteed debt and risk of default, given that Sanral's ability to service the debt now appeared to be compromised.

"This issue will have implications for South Africa’s credit rating."

He said Gordhan also needed to provide further details on Sanral's bond issues and the GEPF’s bond purchases that apparently began around 2008.

"Questions arose in committee around whether the GEPF had knowledge of the e-tolling project when they purchased the Sanral bonds."

Treasury spokesperson Jabulani Sikhakhane said Gordhan was still waiting for a request from the portfolio committee on finance before he would clarify the matter.

"The National Treasury will (also) explain these matters in due course," he said.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
36 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

6 life hacks you simply have to know

A few simple tricks can make your life so much easier!

 
 

For chic geeks...

Device lets disabled people talk through their nose
It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...