The Public Investment Corporation (PIC) said a “highly contentious disinformation campaign” is doing the rounds on social media alleging there are multibillion-rand legal claims against the assets it manages on behalf of the Government Employees Pension Fund (GEPF).
“At the heart of the allegations is the assertion that an affiliate of Nedbank – which itself was previously associated with Old Mutual – operating in the UK (as Nedbank Private Wealth), had been engaged in bad business practices in the UK and the US, which would give rise to the claimed financial liability, the PIC, which manages some R2.55 trillion in assets, said in a statement on Monday.
It said that both Nedbank and its former parent Old Mutual have refuted these allegations.
The PIC said that it, on behalf the GEPF, is an investor in the listed shares of Old Mutual and Nedbank, and it was solely upon this fact that the PIC and the GEPF were connected to the allegations and the conclusions reached.
“Old Mutual and Nedbank are limited liability companies. Therefore, the PIC’s exposure – acting on behalf of the GEPF – to any claims against Old Mutual and Nedbank assuming they are legitimate is limited to their shareholding only. This is the case with all investments in companies with limited liability, globally,” the PIC said.
“Among the various incomprehensible allegations, is a claim in the amount of £158 billion (R3.2 trillion)against the GEPF and the assertion that all South African state pensions will cease to exist as a result of such a claim. There is simply no factual or legal basis for these assertions,” the PIC said.
It added that it would engage any legitimate authority that had been enjoined to consider the matter.
The PIC said complaints about these allegations had been submitted to several regulatory and investigative bodies in South Africa, the UK and US.
“As far as the PIC is aware, none of the regulatory and investigative bodies have confirmed these allegations. The Financial Sector Conduct Authority, after soliciting and obtaining information regarding the complaint, decided to close the matter,” the PIC said.
“This indicates there is no merit to these allegations,” it said.
“The PIC does not know the motive behind these allegations. The PIC can only assure its clients and their beneficiaries, the public and other stakeholders that the allegations are false and that all its client assets are secure,” it said.
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