Solidarity opposed to the grabbing of workers’ pension fund money for state entities

8 March 2024

Solidarity is vehemently opposed to grabbing workers’ pension fund money to keep ailing state entities afloat. 

Forcing pension funds to invest in albatrosses such as Eskom and South African Airways by means of prescribed assets will be to the serious detriment of the funds as well as of workers’ hard-earned savings.
Zuko Godlimpi, deputy chair of the ANC’s Economic Transformation Committee, this week intimated that, after the election, the ANC intends to focus directly on prescribed assets and to also transform the financial sector. 

According to the ANC’s policy, pension funds must be earmarked for the ANC’s model of industrialisation.

The ANC further contends that the country’s retirement savings should be spread across more asset classes as it is far too concentrated on the stock exchange. The pension fund industry has already criticised the ANC’s policy statements, and warned against investing in prescribed assets that will not perform.

According to Solidarity’s deputy general secretary for strategy, Marius Croucamp, Solidarity will go all out to protect workers’ retirement funds against the ANC government’s attempt to grab the funds. 

“Solidarity’s position on the so-called prescribed assets is that the ANC should simply not be allowed to touch workers’ retirement savings in any way whatsoever. State enterprises such as Eskom and Transnet are mismanaged and being looted, and serve as vehicles for cadre deployment,” says Croucamp. 

“Moreover, contracts at state institutions are awarded strictly in accordance with black empowerment directives that benefit an exclusive ANC elite at the expense of ordinary South Africans. 

“It would be irrational and reckless to invest retirement money in ailing state enterprises at this stage, especially as it would prejudice the value and growth of workers’ retirement funds.” 

Issued by Marius Croucamp, Deputy General Secretary: Strategy, Solidarity, 8 March 2024