The FF Plus is sending a clear warning to the trustees of the Government Employee Pension Fund (GEPF) that they will be held personally liable for reckless behaviour if the GEPF makes any funds available in any form to the government for any reason, including for the creation of an economic support package for the period following COVID-19.
South Africa no doubt needs an enormous economic stimulus package, but those funds must be obtained from banks and international emergency relief organisations.
The trustees cannot rely on any guarantees from the government's side, because the government itself is in a serious financial predicament. It would, therefore, be reckless of the GEPF trustees to allow any investments to be made or loans to be awarded that do not offer an optimal return for GEPF members.
Furthermore, the GEPF finds itself in a weaker position due to the slump of markets worldwide and so making any investments or giving loans while in this weakened financial position would be risky and reckless.
The FF Plus is also sending a warning to the government to take note that the money of the GEPF is meant for members' retirement and that it is not a savings account from which funds can be withdrawn as the government likes.
There exist legislation and rules that earmark these funds for the retirement and care of the members and any improper request or pressure on the GEPF from the government's side will compel members to take action, including legal action, to protect their interests.
The FF Plus would like to remind the government of the enormous dilemma that resulted from the mismanagement of the Transnet pension fund, which ended in a record claim of R79 billion. If the government is going to fiddle with the GEPF, the claims that will come of it will make the Transnet pension fund case seem trivial.
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