HOSPERSA SLAMS PENSION FUND BAIL OUT FOR SAA

HOSPERSA May 23, 2017

The Health and Other Service Personnel Trade Union of South Africa (Hospersa) is alarmed by reports that National Treasury is considering using the Government Employee Pension Fund (GEPF) to bail out the “debt ridden” South African Airways (SAA). The Union has vowed to take government to task should the employee’s pension fund be misused by those entrusted with its management.

According to reports, National Treasury is considering a number of avenues to finance SAA and one of them includes having the Public Investment Corporation (PIC) as a public equity partner. The fact that the PIC manages the GEPF has given rise to alleged usage of the fund to finance SAA. It is also reported that SAA reflected a R4.8 billon loss in the previous financial year ending on March 2017 and currently loses R250 million per month.

“Hospersa is shocked that government is considering using employee’s pension fund to rescue SAA,” said Hospersa General Secretary Noel Desfontaines. “For the majority of employees in the Public Service, the pension fund is their only investment for the future. To use the fund to bail-out state owned entities especially those plagued with alleged corruption and maladministration would be reckless,” argued Desfontaines.

It is reported that SAA has spent R21 million on fraud and corruption inquiries in the past three years without any evidence of individuals being held accountable. The latest report on corruption at the national carrier involves an employee benefiting financially from a R13,6 million tender. It is alleged the employee forged documents to bypass supply chain processes.

It is further reported that the newly appointed Deputy Finance Minister Sfiso Buthelezi has recently been appointed chairman of the PIC. The PIC is the biggest investor in the economy, managing an estimated R1,87 trillion. The appointment of the chairman and the board is done by the Minister of Finance where in this instance, the appointment was done by the newly appointed Finance Minister, Malusi Gigaba.

“These reports seem to suggest that the wolves are circling in and getting ready to pounce on the hard earned savings of public servants,” said Desfontaines. “As a union with many members in the public sector, we will take government to task at all our available avenues to protect our members’ pension savings from the clutches of corrupt officials,” concluded Desfontaines.

Categories: Archive

Tags: Archive

HOSPERSA DISTURBED BY PENSION FUND BAIL OUT FOR ESKOM

Hospersa is alarmed by the announcement of the R5 billion bail out to Eskom by the Public Investment Coporation (PIC). The Union has called on the PIC to focus on investing and not fall victim to granting loans to cash-strapped government entities.

HOSPERSA February 6, 2018

HOSPERSA SLAMS GOVERNMENT’S PLANS TO RETRENCH PUBLIC SERVANTS

Hospersa has criticised Government’s plans to cut costs in the public sector by cutting the wage bill. Instead, the Union has called on Government to address the critical levels of staff shortages in the public sector.

HOSPERSA June 3, 2019

SAA plans to save R900m through staff cuts

Loss-making national airline South African Airways (SAA) is looking to save more than R900m over three years through staff reductions under discussion with trade unions.

It is part of a multi-pronged cost-cutting plan to save R2.2bn in the next three years. It would be in addition to the 17% unit cost reduction over the past three years.

HOSPERSA July 27, 2015

Teachers and police resign in mistaken belief about pensions

Teachers, police officers and other members of the Government Employee Pension Fund (GEPF) are continuing to resign due to the mistaken assumption that pension rules will change next month.

Acting CEO of the Government Pensions Administration Agency Jay Morar said on Tuesday that rumours continued to circulate that from next month, members of the GEPF would no longer be entitled to a lump sum upon retirement. Teachers and members of the South African Police Service (SAPS) are the most affected.

HOSPERSA January 17, 2015

HOSPERSA RALLIES ITS MEMBERS IN THE PUBLIC SERVICE TO EMBARK ON NATIONWIDE STRIKE ACTION

Hospersa, which represents more than 50 000 public service employees [predominately health workers] has started rallying its members to embark on industrial action next month, following government’s failure to implement clause 3.3 of the Public Service Coordinating Bargaining Council (PSCBC) Resolution 1 of 2018 which talks to public servants wage increases for 2020/21

HOSPERSA September 17, 2020

Related Articles