Should government use pension funds to bail out Eskom?

The South African government has sold its stake in Vodacom to help fund Eskom.

How ethical is it for government to sell an asset to a related entity? And how ethical is it to use government employees' pension funds to bail out Eskom?

The Money Show presenter Bruce Whitfield interviewed Jan van Niekerk, CEO of Regarding Capital Management.

Listen to the audio (scroll down) for more detail.

The PIC has a natural connection to government.

Lungisa Fuzile, Director General at Treasury

It’s not a bad transaction for government’s pensioners. It’s the largest pension fund in the country and they need to invest that capital. Not long ago most of that capital was invested in government bonds.

Jan van Niekerk, CEO of Regarding Capital Management

It’s a slippery slope. There’s a risk that government may be tempted to do this again. It must be noted though that this is common in many countries.

Jan van Niekerk, CEO of Regarding Capital Management

This article first appeared on 702 : Should government use pension funds to bail out Eskom?


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