Akani fights back after FSCA search and seizure raid
Company to ask court to declare watchdog’s operation unlawful
Akani Retirement Fund Administrators (RFA) is headed to court to ask for the search and seizure executed at its offices by the Financial Sector Conduct Authority (FSCA) to be declared unlawful.
The watchdog pounced on the company this week after it was granted a court order by the Pretoria high court.
FSCA commissioner Unathi Kamlana said the search and seizure operation was to gather facts and information to assist the watchdog in its current investigation into Akani.
He said the FSCA received complaints, which contained sufficient information to create a reasonable suspicion that Akani may have contravened financial sector laws.
“The overriding objective of the FSCA is to protect financial customers, which includes members of retirement funds, who demographically represent all the members of our society. This operation is in keeping with that duty, and is in the interest of clean administration in the retirement funds sector,” Kamlana said.
The raid on Akani’s offices came after the Joburg high court found two weeks ago that the company had bribed trustees of the Chemical Industries National Pension Fund (CINPF). Akani has said it will be appealing against the judgment.
Akani lost the CINPF contract last year after falling out with the fund’s board of trustees, with allegations and counter-allegations of incompetence and corruption.
The FSCA would not be drawn into revealing whether this is the matter it is investigating.
“In terms of the statutory provisions of section 251 of the FSR Act (Financial Sector Regulation Act of 2017), the FSCA is not at liberty to disclose any details of the investigation,” Kamlana said.
“This information will be shared once the outcomes are carefully considered and due process is followed with regard to any subsequent decisions or actions, as required by the relevant laws.”
Akani, the country’s largest blackowned and managed retirement fund administrator, with R26-billion worth of assets under management, on Friday hit back, saying the search and seizure is unlawful and that it will approach the court to declare it as such.
“The FSCA’S recent search and seizure operation on Akani RFA’S offices is unlawful for a variety of reasons. It is also unfortunate, particularly given Akani RFA’S past cooperation with the FSCA.
“Akani RFA intends to take legal action to vindicate its rights in relation to the recent search and seizure operation, including by applying to set aside the warrant (procured by the FSCA without any notice to Akani RFA) on which it was allegedly based,” Akani deputy MD Jack Malebana said.
Akani further accused the FSCA of soiling its reputation. “There was no basis for releasing a statement about an investigation that has not been concluded... the FSCA’S decision to publish it at this stage is incompatible with its statutory duty to be fair and independent.”