SATURNIA SCAM EXPLODES
SERIOUS security and safe custody concerns have arisen over US$40 million pension funds illegally externalised to off shore investment without Government authorisation by Zambia’s largest private pension fund - Saturnia.
Contrary to Government regulations and without prior approval from the Trustees, the funds were externalised by fund managers who did not disclose the nature of investment, rate of interest and form of investment that was being made.
They are now requesting the Minister of Finance to regularise the transaction.
However new revelations of Saturnia’s multiple identities and ownership have deepened fears of the Fund’s integrity.
It is also not clear in whose names the investment was made considering that there are four seemingly related “Saturnia” institutions.
According to documentation availed to the Daily Nation, four entities exist, namely:
- Saturnia Regna Pension Fund
- Saturnia Regina Pension Scheme
- Saturnia Registered Trustees and
- Saturnia Regna Pension Trust Limited.
Asked to comment, the Registrar of Pensions and Insurance Authority, Mr. Martin Libinga, insisted that Saturnia was a pension fund registered by PIA.
However, as advised by the Trustees, an investigation by Daily Nation at the Patents and Company Registration Authority revealed that Saturnia was a registered company with shareholders.
At PACRA, the company is registered as Saturnia Regina Pension Trust Limited and the registered offices being at Plot No.74 Independence Avenue. A check at the premises revealed that no such company resided at the premises.
Equally, tiledeeds at the Ministry of Lands showed that properties were being held in the names of Saturnia Pension Fund and Saturnia Registered Trustees.
Meanwhile, contributing companies are paying into bank accounts held by Saturnia Pension Scheme and Saturnalia Pension Fund.
Mr. Libinga had insisted that “Saturnia is a pension fund. It is registered under trusts. It is a multi-employer scheme which handles contributions from these employers about 142 and managed by African Life and the administration is Bencon. This is a pooled fund from the various employers who are putting monies there.”
He added: “It is registered and I’m surprised why you can’t find it at Lands because it has been a trust for quite some time. You could still get back to them and they will give you the trust deed and there are rules on how the fund must be managed,” Mr. Libinga said.
The 2016 annual report and financial statement indicated that PIA had made a submission to the Ministry of Finance to obtain approval for the fund’s offshore investments that were remitted irregularly and that the investment had not yet been approved.
“The PIA was engaged to assist to ratify or seek ministerial approval for the offshore investments. Following this, the PIA conducted a targeted inspection on the offshore investments in July 2016.
“Upon the conclusion of the targeted inspection, the PIA advised that they had made a submission to the Ministry of Finance to obtain approval for the fund’s offshore investments.
“The fund is currently awaiting the approval from the Minister of Finance made through the PIA,” reads the statement in part under investment properties.
According to the 2012 Saturnia Regna Pension Fund trust deed and rules, the trustees are supposed to meet from time to time but at least four times in every 12 months to conduct the business of the fund with the quorum formed by 50 percent of total number of the trustees but that has not happened from last year to-date.
In August 2017, Finance Minister Felix Mutati directed the PIA to appoint an independent auditor to assess the financial and operational governance of Saturnia Regna within 30 days following a stand-off between fund managers and the trustees over glaring irregularities that rocked the institution.
To-date, nothing has materialised and trustees are now wondering whether Government will ever do anything to help protect the interest of the pensioners whose monies are at stake due to seemingly unsatisfactory operations of the fund.