Amy Musgrave
5 November 2008
Johannesburg — FINANCE Minister Trevor Manuel might intervene in the R4bn legal claim against Investec for the alleged mismanagement of pension funds, the Federation of Unions of SA (Fedusa) said yesterday.
After a meeting between Fedusa and Manuel, the federation's general secretary, Dennis George, said Manuel had been briefed on the matter and would investigate it.
"The minister said he would study a report we gave him, and would see if he can get the parties to agree to mediation and a settlement," he said.
Investec has been in a costly seven-year battle over a failure to pay bonuses for two years, which led to losses in value in the fund and subsequent losses for members and pensioners.
If Manuel decides to intervene in the matter and is successful, it will not be necessary for the case against Investec Employment Benefits (IEB) - set down for the end of next year - to go ahead.
Manuel said yesterday he did not want to prejudge the matter as it was before court.
"It would be quite irresponsible of me to (say) if there have been any irregularities," he said.
However, the minister said it was a "non-negotiable" that trustees should account for what had happened to funds, and that at any time contributors to life assurance needed to know "that their expectations will be met".
"All of our funds have adequate capitalisation ... it (the IEB issue) relates to trusteeship, not solvency," Manuel said.
Fedusa and Manuel meet each year . They discussed a number of issues at yesterday's gathering , including the federation's draft economic resolutions for its congress, which starts tomorrow , as well as the global economic crisis . Manuel reiterated his belief that SA's financial institutions were well capitalised and supervised.
He was also asked to comment on the US elections, and said the outcome of the poll was bound to have some effect on SA. "There are policy debates that would have an impact and ramifications around the world," he said.
He watched policies on taxes closely, and the US's enlarged debt ratio would require further borrowing, which could have an effect on what SA could borrow.
Manuel said although "we all want Barack Obama to win", SA was not a colony of the US.
"I didn't give my life for the struggle to be (part of) a colony."
Manuel would not be drawn on who the new deputy finance minister would be, saying he did not make the appointments.
African National Congress national executive committee member Enoch Godongwana has been widely tipped to become the new deputy finance minister.
"I await somebody to be assigned deputy minister of finance so that I can transfer some of the load ," Manuel said.
With Sapa
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