FSB has no oversight over Transnet pension funds | Fin24
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FSB has no oversight over Transnet pension funds

Oct 13 2017 18:41
Lameez Omarjee

Johannesburg – The Financial Services Board (FSB) cannot intervene on matters regarding the Transnet Employees’ Pension Fund.

The FSB issued a statement on Thursday to clarify its position in terms of oversight of Transnet’s pension funds.

This follows a statement by the Democratic Alliance (DA) where the political party announced its intention to write to the FSB requesting it to investigate Regiments Capital and its directors for possible breaches of the Financial and Intermediary Services (FAIS) Act.

Regiments Capital made unlawful payments of more than R500m from the Transnet Second Defined Benefit Fund to Gupta-linked Trillian and Albatime, said MP Natasha Mazzone. The Transnet fund entered into a contract with Regiments to manage its assets in August 2014, which was later cancelled in September 2016.

But the FSB clarified which authorities have oversight of Transnet’s pension funds.

“Certain public sector retirement funds, including three funds established under Transnet, are not regulated under the Pension Funds Act, 1956 and, therefore, are not under the supervision of the FSB,” the statement read. These funds were established in terms of separate Acts of Parliament, the FSB explained.

The retirement funds are the Transnet Pension Fund, Transnet Retirement Fund and Second Defined Benefit Pension Fund and they are governed and supervised in terms of the Transnet Pension Funds Act, 1990.

“Members and pensioners who belong to the three Transnet funds should approach the individual funds for any disputes or complaints,” the FSB said.

The FSB has directed those who want to dispute the outcome of complaints to approach the Public Protector.

In July Transnet CEO Siyabonga Gama said the company had hired Werksmans to investigate allegations of corruption at the state-owned enterprise, Fin24 previously reported.

In her State Capture report, former Public Protector Thuli Madonsela said in her State of Capture report that she decided to investigate contracts awarded by Transnet to Regiments Capital and Trillian. Gama last year said Transnet had cut all ties with Trillian.

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