VANDERBIJLPARK – Three former directors of the controversial N-e-FG Fund Administrators have suffered a major legal blow after their attempt to overturn massive fines and long-term industry bans failed.

N-e-FG Fund Administrators was a pension fund administrator that managed, administered, and invested retirement savings on behalf of employers and fund members. However, the company collapsed in 2021 after the Financial Sector Conduct Authority (FSCA) found that fund money had been used outside the prescribed investment mandates, leading to losses of approximately R470m for members.

Corné Jansen van Rensburg and Erik du Preez were each fined R30m and banned from working in the financial industry for 30 years. Steyn Jansen van Rensburg received a fine of R8m and a 20-year ban.

The FSCA had already revoked N-e-FG’s license in 2021 after finding that pension fund money was not used according to investment mandates, but was instead funnelled into high-risk projects.

The three appealed to the Financial Services Tribunal, claiming they were merely negligent and had not acted with fraudulent intent. They even argued that an “unknown lender” was willing to repay the full amount. But the tribunal dismissed their application as frivolous and stated there was likely criminal intent involved.

The ruling means the fines and bans remain in place.

According to Judge Louis Harms, the bans are not about revenge, but rather about protecting the public from financial players who cannot be trusted.

For the thousands of local pensioners and workers whose savings vanished, the ruling at least offers some assurance that there is still a fight for justice, though the money may never be recovered.