We will not let go un­til we have the money, says FSB

Weekend Argus (Saturday Edition) - - GOODWINES -

The Fi­nan­cial Ser­vices Board (FSB) gave no­tice to fi­nan­cial in­sti­tu­tions, re­tire­ment fund ad­min­is­tra­tors, em­ploy­ers and other par­ties that it will not be de­terred in its quest to have sur­plus money stripped from re­tire­ment funds in the 1990s re­turned. This comes in the face of an avalanche of lit­i­ga­tion launched by the in­volved par­ties at­tempt­ing to block the FSB and the cu­ra­tors of the af­fected funds.

“We are not go­ing to let go. We are go­ing to fight un­til we get the money,” Dube Tshidi, the chief ex­ec­u­tive of the FSB, told Par­lia­ment this week.

In his pre­sen­ta­tion to the par­lia­men­tary fi­nance com­mit­tee, Tshidi ac­cused the in­volved par­ties, in­sti­tu­tions and em­ploy­ers of “rap­ing” the re­tire­ment funds. The amount now to­tals more than R1.1 bil­lion.

And in an in­ter­view with Per­sonal Fi­nance, Tshidi said that the im­pact of the con­duct of the ad­min­is­tra­tors may have a bear­ing on their re­tire­ment fund ad­min­is­tra­tion li­cences.

“I have al­ready writ­ten let­ters to the ad­min­is­tra­tors, but this will be a very dif­fi­cult step to take.”

In Par­lia­ment he ac­cused those in­volved of us­ing ev­ery le­gal tac­tic pos­si­ble to avoid re­pay­ing the sur­pluses to the right­ful ben­e­fi­cia­ries, namely the af­fected re­tire­ment funds and their mem­bers.

He says re­cently the FSB re­jected an of­fer of R80 mil­lion to R90 mil­lion by one of the in­sti­tu­tions be­cause there was a lot more dam­age than what they of­fered. He de­clined to name the in­sti­tu­tion.

How­ever, Per­sonal Fi­nance is aware that Alexan­der Forbes, which is be­ing sued by the cu­ra­tors of the funds for more than R1 bil­lion, has been in talks with the FSB and the cu­ra­tor, Tony Mostert.

Tshidi told the par­lia­men­tary fi­nance com­mit­tee that he could not start to tell the ex­tent of the lit­i­ga­tion brought by the in­volved in­sti­tu­tions.

He says the FSB and the cu­ra­tors have al­ready won a num­ber of the court cases and will con­tinue to face down the in­sti­tu­tions and em­ploy­ers.

Asked about whether the FSB re­quired any help from the par­lia­men­tary com­mit­tee, Tshidi said he was con­fi­dent of winning, but if nec­es­sary he would re­turn to the com­mit­tee for help.

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