Senior employee breaks silence on how the regulatory agency was allegedly ‘ grossly negligent’ when closing orphaned pension funds
‘Unlawful” and “grossly negligent” – that’s how a senior executive of the Financial Services Board (FSB) has described her own organisation’s behaviour in closing thousands of “orphaned” pension
Dube Tshidi, the registrar of pension funds, has called Hunter’s campaign a “theoretical, legal-technical and futile exercise”.
In a submission to Justice O’Regan, he said the expedited process had been “sensible, pragmatic and somewhat robust”.
Instead of the industry gaining from the process, Tshidi claims they aided the FSB at “significant cost” to themselves.
Despite this, Hunter claims Tshidi and the FSB board undermined her attempts to investigate the issue.
“Although all of my conduct in relation to the cancellations project was intended to ensure compliance ... it was met with considerable resistance,” she states in her court papers.
Hunter’s accusation – which the FSB has not had a chance to answer – is that the FSB is trying to bury the findings of the two reports, as well as her own internal reports. Marele responded: “The investigation is not yet complete, but a preliminary report from Justice O’Regan is available to all parties concerned, including Ms Hunter, with the proviso that they sign confidentiality agreements.”
Hunter has been called to disciplinary hearings, and was at one point offered a R6 million “golden handshake” to leave quietly.
In addition to this, Hunter claims that at a board meeting on October 14 2015, she was accused of being “divisive” and was “cautioned against making any public disclosures of defects in the conduct of the cancellations project lest this result in a ‘run’ on pension funds and a risk to the financial stability of their banks” – a risk that she dismisses.
On Friday, the FSB confirmed that it would oppose Hunter’s application.