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Cape Town - The Financial Services Board (FSB) has intervened in the managing of the struggling security guards' pension fund, the Private Security Sector Provident Fund, and replaced its management board.
,p> At the end of February last year the fund had more than 250 000 members and R960.4m worth of assets under management.The new management board has been instructed to investigate alleged irregularities perpetrated by the fund's administrator, NBC, as well as expenditure by and the remuneration of trustees.
NBC was appointed as administrator in 2002, when the fund was established in terms of labour legislation that made security guards' membership of the fund compulsory.
Max Maisela, the chairperson and chief executive of NBC, announced in October that the company would terminate its contract after the pension fund adjudicator announced a scorecard investigation. This showed that the provident fund was the poorest performer among pension funds.
NBC puts the blame on problems with legislative enforcement. Maisela said that the pension fund adjudicator had not taken into account that the problems "bedevilling" the fund were outside NBC's control.
Another fund managed by NBC, the Contract Cleaning National Provident Fund, was the second-worst performer.
- Sake24.com
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