To The Sowetan

6 March 2001

The Editor,
The Sowetan Newspaper

Dear Sir,

The South African Pension Fund Scandal

I refer to your article in Sowetan Money Matters Tuesday 27th February 2001.

The issues are becoming clearer for all to see as the tragedy unfolds in our media.

Misrepresenting pension fund governance responsibility to union negotiators is not a useful explanation of the actions of the FSB and Actuaries, both paid by us to defend our rights.

It is heartening to see the Union movement taking up the defence of working South Africans retirement benefits. Well done to Manene Samela, I salute your brave uncompromising stand to defend the property rights of working South Africans.

For me the issue is very clear.

It is about whether we allow 500 plus wealthy industrialists to laugh all the way to their overseas bank accounts with R80 billion of misrepresented members reserves now called surplus or whether we ensure 5 million working South Africans are properly funded at retirement.

For those promoting the myth that "BIG BUSINESS" will use a potential windfall of R80 billion to create jobs, I say, I don't believe you.

It is my belief that when the R80 billion is returned to their rightful owners, that these retained retirement funds in the investment sector will generate jobs. When we all retire, the money will be well spent by us all thus generating even more jobs in South Africa.

With dysfunctional governance systems like the FSB in total denial about their role in registering unfair rules and authorizing what may turn out to be illegal undervalued transfers, we all need to be concerned about our retirement benefits.

It is my belief that until there is total exposure of the real issues and understanding by all, those entrusted with the responsibility of governance and who played role in the injustices of the past, will continue to try and hide the enormity of the crime carried out against millions of working South Africans.

Basil Kransdorff