Talks Are 'Advanced' for Covid19 Affected Workers to Access Funds, Says Mboweni

Talks Are 'Advanced' for Covid19 Affected Workers to Access Funds, Says Mboweni

  • Minister of Finance Tito Mboweni is assuring provident fund beneficiaries affected by Covid-19 that a working solution for financial relief is in the pipelines
  • The minister was speaking to businesses and unions on behalf of the National Treasury at the National Economic Development and Labour in Johannesburg
  • Economists and organised business have welcomed Mboweni's pronouncement although the sense is that a lot of work still needs to be done

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

South Africans suffering the financial burdens due to the effects of the Covid-19 pandemic may be in line for some relief, according to the Minister of Finance Tito Mboweni.

Mboweni said on Wednesday that Treasury has had discussions with businesses and unions on a proposal for a partial withdrawal from retirement funds, according to a News24 report.

Covid19, Provident fund, Pension, Relief, Workers, National Treasury, Unions, Organised business, Nedlac, Funds, National Economic Development and Labour Council, Johannesburg
Minister of Finance Tito Mboweni has assured Covid-19-stricken working South Africans that talks are at an advanced stage for a partial withdrawal from retirement funds. Image: Brenton Geach/ Gallo.
Source: Getty Images

The minister, who was speaking at the National Economic Development and Labour Council (Nedlac) in Johannesburg, said this would apply to those who lost part of their income during the Covid-19 pandemic.

Read also

Covid: Biden set to announce vaccination requirement across US government

PAY ATTENTION: Never miss breaking news – join Briefly News' Telegram channel

As has always been the case, provident fund members are only entitled to withdrawals once they retire, resign or get retrenched.

"I am determined, now more than ever before, to ensure the officials in the National Treasury … speed up this matter," Mboweni declared.
"Government continues to engage with trade unions, regulators and other stakeholders to discuss how to allow limited withdrawals linked to tightening preservation by closing current loopholes.
"And, also, to expand coverage so that all those employed or earning an income are required to put aside a small proportion for saving for their future."

Per SABC News, economists and organised business, including the CEO of Business Unity South Africa (BUSA), Cas Coovadia, have welcomed Mboweni's pronouncement.

Coovadia believes the relief packages will be good for those hardest hit, not only by the pandemic but by the social unrest and the worsening economic situation in the country. He said:

Read also

Julius Malema slams ANC's timing of R350 grant: "Another food parcel programme"

“Although a lot of work still needs to be done and lots of details still need to be unpacked, National Treasury has given us a good sense of what’s been done and have also given us information that we believe is important in a broader economic and fiscal situation."

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Online view pixel