The minister of public enterprises, Ms. Lynne Brown, following denials of her predecessor Malusi Gigaba, has now acknowledged that Transnet’s pension funds will have to pay for the legal fees of the class-action court case themselves, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on Trade and Industry says.
Adv. Alberts says it is shocking news and means in effect that the pensioners’ funds will have to be used to defend a case that they had initiated themselves.
“This action is scandalous. In a response to a previous written parliamentary question the previous minister (Gigaba) indicated that Transnet will cover all the legal fees. Now the pensioners have to pay for the opposing respondents with their own capital funds,” Adv. Alberts says.
Adv. Alberts says when he asked these questions earlier this year, the reply in July was that Transnet would be funding its costs from operational cash flows. The two funds would do it from their respective operational budgets.
In the case of the TSDBF its operational budget is wholly funded by Transnet and in the case of the TPF by the various employers, i.e. Transnet, PRASA and the South African Airways.
“This state of affairs does not bode well for the claimants as the legal case will place a heavy burden on the pension funds. The FF Plus will again enter into talks with the minister about the issue,” Adv. Alberts says.
Contact no.: 082 391 3117 / 083 419 5403