No money looted at PSPF – director
MANZINI – “There is no money that is being looted,” says the Public Service Pensions Fund (PSPF).
This was said by the Director of Corporate Services at PSPF, Elkan Makhanya. He was responding to questions posed to him following allegations made by the Swaziland Pensioners’Association (SPSPA).
In a general council held at the Swaziland National Association of Teachers (SNAT) Centre Hall, the pensioners questioned the categorisation of the PSPF as Category A parastatal.
They even resolved to march and submit a petition to the United Nations (UN) offices in Mbabane to express their dissatisfaction to the world in the manner in which their issues were supposedly handled.
The pensioners claimed that they were angry at government for turning their pension fund, with an estimated reserve value of E14 billion, into a fully fledged government company without their consent.
Funding
They alleged that this was done to ‘loot’their pensions and use their money willy-nilly as government was always in a cash flow crisis. It was further purported that there were companies that were seeking funding from PSPF and after being assisted, neglected to repay the loans extended to them.
In light of these claims, Makhanya was requested to shed light on the position of the PSPF. On the question on whether the pension fund was stolen from pensioners, he said it was not.
He further said they (PSPF) were not aware of any companies that had been extended loans in terms of funding and did not repay. To the question seeking to establish if any money was being looted at PSPF, he said: “This is a baseless allegation that is unsubstantiated and, in our view, extremely defamatory to the organisation. It is also inflammatory, insultive and inciteful.”
Makhanya said PSPF did not condone any association with such baseless allegations as a transparent organisation that was fully regulated and audited.
He advised those making such ‘empty allegations’to be wary of the defamatory nature of such statements and their consequences. The director of corporate services said PSPF remained an organisation that was open and transparent.
“Anyone needing guidance or clarifications on our operations and financial performance is welcome to approach the head office to which we will unpack fully and attend to them.”
This, he said, was currently done through various structures such as stakeholder meetings and Board of Trustees, in which all their members were represented. Makhanya said regular reports were also made to the relevant regulatory bodies, the ministry and all stakeholders. On the allegation by the pensioners that they wanted to know what happened to their 0.5 per cent cost-of-living adjustment (CoLA) as it was reduced from five per cent to 4.5 per cent, he said it was not altered.
Makhanya said communication to the pensioners association was made to the effect that 4.5 per cent was awarded as CoLA effective April 1, 2021. He said this was implemented in the September 2021 payroll.
On the review of the pension exit package wherein the pensioners wanted it to be revised from 25 per cent to 50 per cent with flexibility on the beneficiaries, Makhanya said the management of PSPF met the pensioners association recently.
During the meeting, he said, the request to increase the exit package from 25 per cent to 50 per cent was made. Makhanya also said the request was still under discussion and investigation, and would be dealt with through the relevant structures of the organisation.