Reports have recently surfaced that the GEPF, through its investment entity, the Public Investment Corporation (PIC), may use state employees’ pension contributions to bail out SAA. In addition to voicing their serious concern about these reports, NAPTOSA members have also been asking the union what it is doing to protect the pensions of its members.
The national NAPTOSA leadership takes this matter very seriously and, in conjunction with the other 12 unions that are members of the Independent Labour Caucus (ILC), chaired by NAPTOSA’s Executive Director, Mr Basil Manuel, has written an open letter to the members of the GEPF Board of Trustees, executive officers of the GEPF and the Minister and Deputy Minister of Finance to bring, inter alia, the following to their attention:
Demanding that the GEPF must, unequivocally, pronounce that it would turn down any request to bail out SAA.
Reminding the Board of Trustees that, in cases where trustees of the GEPF Board do not comply with their primary fiduciary duties, allows conflicts of interest to influence their decisions, or deliberately subject themselves to external influences, they can be held personally liable for possible losses.
Pointing out to the recipients of the open letter that the ILC, in protecting the interests of its members, will not hesitate to take legal action.
To read the open letter pdf Click here (319 KB)
On 13 September 2017 the ILC received a response from the GEPF, stating inter alia, “The GEPF has confidence in the PIC’s ability to prudently invest funds on its behalf in terms of the agreed investment mandate, and constantly monitors and evaluates the PIC’s performance in accordance with its investment policy and mandates. Furthermore, the Fund requires the PIC to seek special authority to invest where investments exceed predetermined limits and/or have specific characteristics."
To read the GEPF’s full response. pdf Click here (377 KB)
The Chair of the GEPF Board and principal officer will also meet with Mr Manuel and the other unions’ principals during the week of 27 September 2017 in NAPTOSA House.