News24
25 Aug 2019, 23:43 GMT+10
South Africa's intentions to tap state workers' pension funds to revive a struggling economy would be strongly opposed, the Sunday Times reports, citing a major trade group on pensions.
The state workers' pension funds lobby group doesn't trust government investing pension funds to bail out struggling state-owned companies such as utility Eskom Holdings, said Adamus Stemmet, spokesman for the Association of Monitoring and Advocacy of Government Pensions. The investments wouldn't yield positive returns, Stemmet told the weekly.
President Cyril Ramaphosa told Parliament on August 22 the nation must debate the use of prescribed assets to rejuvenate investment and boost tepid economic growth. Continuing to invest pension funds in the debt-laden state-owned utility Eskom, for example, would result in further losses, Stemmet said.
Nest egg raid or tool for development? Your guide to prescribed assets
"If we could have trusted the government, this might have been an option," Stemmet said. "But we cannot trust this government; there would be a negative return on any money invested in Eskom or any other state-owned enterprise."
The Public Investment Corporation, which manages about R2trn on behalf of state workers, is under pressure to adopt a mandate that includes economic growth rather than focus purely on financial returns.
Get a daily dose of Dublin News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Dublin News.
More InformationBASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
NEW YORK CITY, New York: Financial markets kicked off the week on a cautious note as President Donald Trump rolled out a fresh round...
DUBLIN, Ireland: Irish Rail incurred over 26,000 euros in damages due to a series of graffiti incidents carried out by a 24-year-old...
SLUBICE, Poland: Poland reinstated border controls with Germany and Lithuania on July 7, following Germany's earlier reintroduction...
DUBLIN, Ireland: Taoiseach Micheál Martin has expressed cautious optimism that the European Union and the United States can strike...
ZAGREB, Croatia: A massive concert by popular Croatian singer Marko Perković, known by his stage name Thompson, has drawn widespread...
DUBLIN, Ireland: Despite extreme heat gripping much of mainland Europe, Irish holidaymakers are pressing ahead with their travel plans,...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...