Pension grabs for state expenditure just another form of state capture, says IRR
According to the Institute of Race Relations, an attempt to make up for wasted public funds by expropriating private funds will further undermine economic confidence and harm pension assets.
The Institute of Race Relations (IRR) rejects yet another attempt by the ANC to use asset prescription, the expropriation of assets, savings and pensions, to continue bailing out failing state-owned enterprises, create an ideologically motivated and hazardous state-owned bank and a pharmaceuticals company, and prop up or create financial institutions – such as the Land Bank, which has recently reneged on its own debts.
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In a statement the IRR said this attempt to make up for wasted public funds by expropriating private funds will even further undermine economic confidence, harm pension assets, and exacerbate the negative consequences of state intervention in the economy and finances of ordinary people.
“Such a drastic and irresponsible approach is so fundamentally unsound that people can be forgiven for concluding that this is just another way for the ANC to oil the gears of its spluttering and parasitic patronage machine,” said IRR Deputy Head of Policy Research, Hermann Pretorius.
Pretorius stressed that all South Africans hoping to be able to save for their retirement, and every asset manager responsible for managing such life savings, must outright reject this asset grab and see it for the blatant form of state capture that it is.
“South Africa’s best hope for economic revival is to reject the failed and counterproductive government policies of the past decade, and pursue proven policies rooted in sound economics to achieve the growth and development all South Africans deserve.”
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