State pension funds suffer huge loss of R43 billion in write-offs

State pension funds suffer huge loss of R43 billion in write-offs

- State pension funds have been hit by a massive loss of billions after investments had to be scrapped

- The pension fund that had control over government employees' savings had to write off investments

- Loans to companies owned by Iqbal Surve also caused big losses as Surve failed to pay

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The pension fund in control of the savings of government employees had to write off 2 controversial investments at a huge cost of R5.3 billion.

The Government Employees Pension Fund's investment of R4.3 billion in Steinhoff's Lancaster, has been rendered worthless after the retailer's value decreased with R200 billion.

As reported by BusinessInsider, the fund also had to write off about R1 billion's investments and loans with companies controlled by Iqbal Surve. Surve failed to make payments.

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Surve is also the owner of Independent Media which publishes The Star.

Briefly.co.za gathered that the fund suffered impairments of R995 million in 2015/2016 but losses rose to R7.4 billion in 2017/2018.

According to an annual report by the fund, a total of R375 million was also invested with VBS Mutual Bank, which was brought to its knees thanks to corruption.

The governance of the fund has been questioned and scrutinised and an inquiry into it will be led by judge Lex Mpati.

Mpati is the former president of the Supreme Court of Appeal.

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Government funds suffer R43 billion loss in write-offs

Mr Abel Sithole - Principal Executive Officer and Ms Linda Mateza - Head: Investment & Actuarial (Image Source: gepf.gov.za)

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Source: Briefly.co.za

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