State gambling with public servant’s pension funds at Lonmin
23 November 2015
It is unacceptable that money of public servants will now be used to rescue the unstable Lonmin, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on the Economy said.
According to media reports today, the Public Investment Corporation which manages the public sector’s pension funds will acquire a further 25% in Lonmin with this rights issue of the struggling platinum producer. The investment amounts to R1,9 billion.
Lonmin’s share price dropped by 80% this year from R35 to less than R3 earlier this month. With regards to market value, it stood at R29 billion a year ago. At present it is valued at R3,5 billion.
Adv. Alberts says the FF Plus will be taking up the issue with the Minister of Finance and the pension funds adjudicator to prevent the public servants’ from losing their money. He said it is extremely risky to invest funds in a company which is on the brink of bankruptcy.