Gigaba to assess damages to pension funds caused by Steinhoff saga
Malusi Gigaba says he is mindful that many retirement and savings funds may be affected by the loss in the value of Steinhoff shares.
CAPE TOWN – Finance Minister Gigaba has requested details from retirement and savings funds to determine the extent of the damage caused by the latest developments involving Steinhoff.
On Thursday, the company lost about 34% of its share value after a bigger Wednesday crash.
The international group has admitted that there have been financial irregularities with German prosecutors launching a criminal probe.
The finance minister says he notes with grave concern the statement by Steinhoff.
Minister Gigaba says he is mindful that many retirement and savings funds may be adversely affected by the loss in the value of Steinhoff shares.
He says he has requested the retirement funds regulator at the FSB, the Public Investment Corporation, and the Government Employees Pension Fund to provide him with a report on the extent of exposure for retirements funds.
He says he will also have discussions with other appropriate regulators, like the Independent Regulatory Board for Auditors to assess any likely lapses in financial and auditing reporting.
The Public Investment Corporation has responded to the Steinhoff collapse, saying the latest reports are of serious concern.
It says its expose to Steinhoff involves about 10% of shares in issue.
LISTEN: How the Steinhoff scandal affects pension funds