Penalties of R68 million for former N-e-FG’s bigshots
N-e-FG managed pensions for individuals as well as for several large companies in the Vaal Triangle
VANDERBIJLPARK – The Financial Sector Conduct Authority (FSCA) has imposed hefty administrative penalties totaling R68m on four former key executives of the now defunct financial services provider, N-e-FG, that was based in the Vaal Triangle.
In November last year, Sedibeng Ster reported that N-eFG’s failed retirement scheme put over 200 investors at risk of losing R470m.
This caused panic among many Vaal Triangle pensioners who had invested their life savings with N-e-FG.
N-e-FG managed pensions for individuals as well as for several large companies in the Vaal Triangle and elsewhere in South Africa.
The FSCA suspended N-eFG’s license in December 2021 after the entity went into business rescue, and placed it under statutory management in June 2022.
Following an extensive investigation into N-e-FG’s business practices, the FSCA found that client funds had been invested without requisite mandates and that investments had been made in unregulated entities.
According to the FSCA, the investigated parties contravened multiple financial regulations such as the Financial Sector Regulation Act, 9 of 2017, and related legislation.
The FSCA announced on Monday that the following penalties were imposed on former N-e-FG key persons:
– R30m each on Stephanus Cornelius (Corné) Jansen van Rensburg and Frederick (Erik) Young du Preez, with 30-year debarring for both.
– R8m on Jeremia Jesaja (Steyn) Jansen van Rensburg, with 20-year debarring.
– 10-year debarring for Elia Christiaan (Chris) Janse van Rensburg.
The FSCA handed its investigation report to the National Prosecution Authority (NPA) and is committed to assisting the authority in further probes, if requested.
Former investors told Sedibeng Ster this week that they welcomed the FSCA’s penalties on former N-e-FG executives but expressed concern that it won’t recover their losses.
“We’ve lost everything but we all have opened criminal cases. We now rely on state prosecution, like in the Markus Jooste case,” said one of the complainants.
