With the ANC’s launch of their election manifesto, it was debated that Treasury should see if pension funds cannot be used to help the bankrupt state entities.
Meanwhile, Mark Barnes Chief Officer at the Post Office and said it would be a big move for the country. The prospective pensioners as well as current pensioners’ money must now be deposited in the bottomless pit of corruption and fraud of Eskom, Transnet, SAL, Denel, Krygkor and others. No explanation has been given that the “loan’s” back payment is guaranteed.
Can the ministers and deputy ministers as well as the parliamentary pension fund not be used instead of the elderly people’s population, is now being asked.
This happened after the pension fund responsible for managing the savings of civil servants wrote off two of its most controversial investments at a cost of R5.3 billion.
The bankrupt government wants to steal our pension is the general cry we hear.
Unfortunately, this is true. South African pensioners’ biggest fear has now become a reality.
The problem with socialism is that you eventually run out of other people’s money.
The ANC election manifesto makes it clear that the party will look into forcing pension funds to invest in state-owned companies.
Economists and the opposition party have expressed their fears that the ANC could target public pensions in order to keep state entities alive. A stern warning has been issued by South African financial experts, as they fear that that public pensions belonging to ordinary citizens could be used to plug the cavernous black hole of debt of the ANC-regime.
South Africans’ pension funds are in the ANC’s sights and the governing party may be able to prescribe future asset managers of these funds how to invest their money. It is believed that they are striving to receive funds for “socially productive investments (such as housing, social and economic development infrastructure and township economies) and job creation”. Intellidex economist Peter Attard Montalto, in response to the ANC’s election manifesto, said on Sunday the item in the manifesto would shock asset managers. Another thing in the election manifesto that will surprise local asset management industry is that the ANC wants to prescribe where big investors such as asset managers and pension funds should invest their money.
The ANC is once again eyeing the notion of prescribed assets, where money managers will be forced to invest a portion of their funds in state-mandated areas and/or companies. In its 2019 Election Manifesto, the party says it will “Investigate the introduction of prescribed assets on financial institutions’ funds to mobilise funds within a regulatory framework for socially productive investments (including housing, infrastructure for social and economic development and township and village economy) and job creation while considering the risk profiles of the affected entities”.
Cyril Ramaphosa announced the manifesto on Saturday at the Moses Mabhida Stadium in Durban. Montalto points out that the proposals are in line with what was decided at the National Congress in December 2017 at Nasrec, but this is the first time that it has been set out in the election manifesto. Montalto expects the issue will lead to a debate on coercion on asset managers and banks to lend money to state-owned enterprises such as Eskom or SAA to keep them alive.
The DA’s finance spokesperson, Alf Lees, believes that prescribing asset managers to invest their money is exactly what the apartheid government used when desperate and when they could no longer obtain capital in international markets. “Instead of announcing new initiatives to stimulate economic growth and job creation, the ANC has decided to simply” expropriate “ordinary South Africans’ savings to save state-owned enterprises such as SAA and Eskom,” he said. Rather than announcing new initiatives to stimulate economic growth and job creation, the ANC has decided to simply “expropriate” ordinary South Africans’ savings to save state-owned enterprises such as SAA and Eskom.
The idea that the highly unreliable ANC will prescribe where retirement money should be invested should horrify all members of pension and provident funds and anyone who has annuity policies!
The ANC and their cronies have virtually stolen all of the savings boxes empty.
The state borrows money to pay operating costs. Government corporations are bankrupt and provinces and municipalities are bankrupt.
The only place where there is still money is the savings of retirement funds. Now they want it too.