NEWS & ANALYSIS

Unforeseen consequences of using govt's pension fund must be considered – FF Plus

Wouter Wessels says pensioners are going to lose all their money in this gamble

Unforeseen consequences of compulsory investments using government’s pension fund must be considered

11 September 2019

The ruling party would do well to thoroughly consider the unforeseen consequences of its intention of using the government's pension fund for certain compulsory investments.

Policy directions usually start off with honourable intentions, but the unforeseen consequences are often overlooked. The FF Plus is, thus, calling on the government to take any possible unforeseen consequences into account and not to put it off until it is too late and the damage has already been done.

Investments in development assets are of the greatest importance for economic progress and job creation. We must, however, learn from past mistakes. The National Party did the very same thing with the government's pension fund and by 1994, there was nothing left.

History will repeat itself. Pensioners are going to lose all their money in this gamble. The fund will lose its secure financial footing as there will be a sharp decrease in investment growth and investors will become impoverished. As a result, members of the fund will have to work more years and contribute more money so as to ensure meaningful provision for their retirement.

The gist of the matter is that the government wants to use the pension fund to save public enterprises that have been ruined by mismanagement and looting.

An assumption that can be made based on the fact that the ANC and the EFF support the proposal is that there are undoubtedly those who are already licking their lips at the prospect of a new source of billions of rands to loot.

The government must also keep in mind that it is the poorest people in our community that will suffer the most if this reckless policy proposal is implemented.

The ANC is following the poor example set by the National Party and will end up in the same predicament. It will lose all the public officials' pension money and ultimately, it will lose power. It is just a matter of time.

Issued by Wouter Wessels, FF Plus MP and chief spokesperson: Finance, 11 September 2019