Fedusa alleys fears over pension funds amid Steinhoff allegations
The Federation of Unions of South Africa (Fedusa) and the Public Investment Corporation (PIC) have assured government employees that their pension funds are safe amid allegations of fraud and corruption against international retailer Steinhoff.
Fedusa and the PIC met in Pretoria on Monday.
The PIC holds R1 trillion of government employee pensions. Less than 2% of the funds are invested in Steinhoff.
"It is unclear what the PIC's losses are, with an estimate ranging from R10 billion to R15 billion," says Fedusa general secretary Dennis George.
George says they are hopeful the crisis will not lead to job losses.
"African retailers, which owns the brands such as PEP Core, Ackerman's, Dunns, JD Group, Hi-Fi Corporation, and Star has not suffered the same extent of the share prices decline as Steinhoff. The majority of 120 000 Steinhoff employees sit under Star listing as opposed to Steinhoff employees, this provides a level for comfort for job protection in South Africa."