ANC’s plans to use pensions to establish state bank comes down to nothing but expropriation without compensation

18 Augusts 2020

The FF Plus has noted with concern the rumours that the ANC government wants to establish a state bank with money from pension funds and the party views it as nothing but attempted expropriation without compensation.

Any such ANC-controlled state bank will only create the perfect opportunity for looting and, thus, it will be of no use to establish a bank like that. The FF Plus will oppose these plans with all its might.

According to news reports in The South African and Sunday Times (16 August 2020), the establishment of a state bank forms part of the ANC's "turn-around plan" to invest pension fund money in government programmes in the form of long-term infrastructure and high-impact capital projects.

In order to do this, the ANC will have to look at amending Regulation 28 of the Pension Funds Act so as to force pension funds to invest in the ANC government's doomed-to-fail projects by means of financial institutions for government development.

Given the corrupt nature of nearly all ANC government projects, exposing pension funds to this risk will erode the value of these pension funds significantly. It could even bring about the total destruction of pension funds seeing as this will open the door for withdrawing money from pension funds again and again.

The final outcome will ultimately make the Transnet pension saga seem like a walk in the park. Thus, any compulsory investments in government projects will come down to nothing but expropriation without compensation.

The FF Plus is currently busy working on a strategy to oppose the ANC government's reckless plan and to prevent any potential damage.

Issued by Anton Alberts, FF Plus national chairperson, 18 August 2020