1 August 2014

South Africa: DA Welcomes Transnet Class Action Legal Proceedings

press release

The DA welcomes the decision by the Pretoria High Court to allow the commencement of class action proceedings against Transnet and two of its pension funds, Transnet Pension Fund and the Transnet Second Defined Benefit Fund (TSBF), on behalf of 65 000 former Transnet employees.

This follows claims that Transnet alienated and mismanaged assets held by TSBF and Transport Pension Fund, resulting in the funds' inability to meets its obligations to pensioners.

There are also claims that Transnet also has the intention to dissolve the pension fund.

The DA remains concerned that Transnet did not take the necessary steps to do what was right, and prevent this costly impasse. To date, poor communication between the pension fund, Transnet and pensioners themselves has prevented a speedy resolution to the matter.

This is why the DA has already written to the Portfolio Committee on Public Enterprises, Dipuo Letsatsi-Duba, requesting the urgent summons of Transnet officials in order to obtain clarity on the status of the Transnet Pension Fund and the Transnet Second Defined Benefit Fund (TSBF), as well as what disbursements are yet to be made from the funds.

We have also requested the Public Protector, Advocate Thuli Madonsela, to investigate the alleged maladministration of the two funds.

We must ensure that these men and women who spent their lives working to improve South African infrastructure are not left to starve and suffer when they can no longer look after themselves.

The DA will continue to closely monitor proceedings and fight for the rights of all of Transnet pensioners.

Natasha Michael, Shadow Minister of Public Enterprises

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