KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL
FANews
FANews
RELATED CATEGORIES
Category Retirement
SUB CATEGORIES General |  Savings & Investments |  Annuties | 

Threat to expropriate pensions compels corporate SA to pick a side: the government or the people

20 August 2020 Institute of Race Relations (IRR)
Hermann Pretorius, Deputy Head of Policy Research at IRR

Hermann Pretorius, Deputy Head of Policy Research at IRR

Corporate South Africa has been ominously silent on the government’s openly stated intention to expropriate pensions and savings through asset prescription – but the time has come for it stand with ordinary South Africans against a policy that is at once fundamentally unnecessary and dangerous.

Having already compromised South Africa’s fiscal position through irresponsible and unproductive spending, the SACP-ANC government is now desperately seeking a new source of funding for its risky and expensive attempt to lead a post-pandemic recovery by spending billions on policies with a proven track record of failure.

An alternative route to recovery – to rising growth, job-creation and, ultimately, prosperity for all South Africans – is spelled out in the IRR’s latest policy document, Growth & Recovery: A strategy to #GetSAWorking (https://irr.org.za/reports/occasional-reports/growth-recovery-a-strategy-to-getsaworking). It sets out how South Africa could achieve economic growth of 7% by the end of the decade, and that it could do so at low financial cost – even if the political costs may be considerable.

The document makes a strong case against raiding the pensions and savings of hard-working South Africans through aggressive asset prescription, and highlights the choice now facing corporate South Africa between protecting the interests and rights of clients or selling them out to an irresponsible government.

By publicly stating their opposition to the government’s intention to expropriate savings and pensions, and heeding the call of the International Monetary Fund for South Africa to adopt growth-enhancing structural reforms by endorsing the IRR’s economic recovery plan, corporate South Africa can prove it is on the side of South Africans who deserve to own what they have worked hard to earn.

Said IRR Deputy Head of Policy Research Hermann Pretorius: “Corporate South Africa has a duty to clients, to South Africans being targeted by a parasitic government, and to common sense to oppose the government on the issue of prescribed assets and to support solutions that will see South Africa prosper.

“The IRR will not shy away from exposing those who, when South Africans needed them most, chose to sell out hard-working people who played by the rules, who saved and managed their finances responsibly, and who trusted banks and other financial institutions with their money.”

 

Quick Polls

QUESTION

The intention with lockdown was to delay or flatten the Covid-19 infection curve and give both the private and public healthcare sectors time to prepare for the inevitable onslaught. Did the strategy work?

ANSWER

No, the true numbers are not reflected. Almost a quarter of South Africans may already have been infected with Covid-19
It’s too soon to tell. We will likely get a second wave with stringent lockdown regulations in place again
Yes, South Africa bought enough time to make a significant difference. We saved lives and have passed our peak. The worst is over
fanews magazine
FAnews August 2020 Get the latest issue of FAnews

This month's headlines

Ethical behaviour - are you toeing the line?
Latest business interruption developments raise more questions than answers
Brokers remember: You are accountable...
A sustainable pension - How to manage living annuities in uncertain times
Claim stats… life can change in a heartbeat
Are South Africa’s income protection benefit providers ready for COVID-19?
Subscribe now