Transnet pensions hit by 'fraud'

Johannesburg - "Massive administrative fraud" has resulted in Transnet possibly owing one of its pension funds as much as R20bn.

This development came to light on Thursday during a mass meeting of pensioners comprising members of the Transnet Second Defined Benefit Fund (TSDBF).

The money missing from the TSDBF includes interest at 16.5% on debentures worth R8.5bn issued before 2000 and never paid out to the TSDBF. It also includes the value of the debentures, which were to be discounted for cash in 2010, as well as dividends on the MTN shares that were allegedly never paid over to the fund. These dividends were reportedly paid direct to Transnet at the time, and the shares concerned sold in 2006.

DA MP Dr Manie van Dyk describes the situation as "massive administrative fraud". He says that forensic investigation by an independent actuary had revealed that R20bn figure in 2006, when it became necessary to determine what Transnet owed the fund.

The pensioners are already involved in an Equality Court case in which Transnet and the TSDBF are among the respondents.

The pensioners are unhappy with a provision in the legislation regulating the pension fund, according to which their pensions are entitled to an annual increase of only 2%.

They want this provision scrapped, and also want the court to order Transnet to register the TSDBF with the registrar of pension funds.

This registration would require the TSDBF trustees to comply with certain requirements, among other things an inflation-linked annual increase for pension payments.

Approximately 80 000 former Transnet workers are members of the fund.

- Sake24.com

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