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