Uncategorized

NOTICE OF THE PROCESS TO ELECT TWO TRUSTEES TO THE GOVERNMENT EMPLOYEES PENSION FUND BOARD OF TRUSTEES 

Notice is hereby given of the election process, in terms of the rules of the Government Employees Pension Fund, for: 

• a pensioner member trustee and substitute trustee; and 

• an active member trustee and substitute trustee representing the South African National Defence Force (SANDF) and State Security Agency (SSA) 

The term of office of both trustees will be four (4) years. The period will begin on the date of the first meeting of the new Board of Trustees. 

The elections are scheduled to take place between November 2017 and March 2018. The election process is independently managed by The Elexions Agency. 

CANDIDATE NOMINATION 

Nomination Instructions accompanied by a letter from the Principal Executive Officer has been sent to all pensioner members and active members employed by the South African National Defence Force (SANDF) and State Security Agency (SSA). Nomination packs are also available on the GEPF’s website: www.gepf.co.za, The Elexions Agency Offices on 0800 55 66 73 or by email at elections@gepf.co.za. 

Candidate nominations must be submitted using the prescribed nomination form and must reach The Elexions Agency on or before 12h00 on 15 December 2017. Nominations received after the deadline will not be considered. 

Nomination forms must be marked for the attention of: The Returning Officer, GEPF 2017 Board of Trustees Elections and may be returned through any of the following methods: 

• Fax: 086 428 1356 

• Email: elections@gepf.co.za 

• Post: P O Box 3318, HOUGHTON, 2041 or Business Reply Envelope which is prepaid. 

VOTING 

Voting for the qualifying candidates will be conducted between January and March 2018. Detailed information on the voting rules and procedure will be communicated to all nearer to the commencement date of the voting process. 

FURTHER ENQUIRIES 

The election process is independently managed by The Elexions Agency. All enquiries pertaining to the election must be directed to Ms Bontle Mpakanyane on 0800 55 66 73 or email: elections@gepf.co.za.
Click here to go to Pensioner Election forms and papers.
Click here to go to Forces Election forms and papers.

The Investment Committee of the Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) held a meeting yesterday to discuss the recent developments regarding Steinhoff. It is important to note that notwithstanding the collapse in the Steinhoff share, the GEPF portfolio remains financially healthy, because of its diversified nature. It is also important to note that GEPF members’ benefits will not be changed by these developments, given that the GEPF is a defined benefit pension fund. The investment loss recorded was 0.6% of the total GEPF portfolio on 6 December 2017. Despite the fall in Steinhoff share, the total GEPF equity portfolio had created a value of approximately R140 billion over the preceding 12 month period, and had performed better than the equity benchmark. Albeit a relatively small reduction in the total portfolio, and despite the signs of recovery in the share price this week, the PIC and GEPF remain deeply concerned about Steinhoff. 

GEPF and PIC agree that the recent developments point to serious governance challenges at Steinhoff and that the following steps are necessary to secure the GEPF’s interest in the company: 

1. GEPF and PIC will insist on the appointment of at least two independent non-executive directors on the Steinhoff and Steinhoff Africa Retail (STAR) boards. 

2. GEPF and PIC will highlight their discomfort with the lack of independence of the Board, including the possible conflict of interest by Dr Christo Wiese as interim Chief Executive Officer. Furthermore, the GEPF and PIC will express their concern about the Steinhoff Audit Committee concluding the terms of reference of the investigations independently. 

3. GEPF and PIC will insist on representation on the Board Committee tasked with investigating the Steinhoff situation, so as to ensure that the process is transparent and that, amongst other matters, the terms of reference address critical governance issues. 

The GEPF and PIC believe that now, more than ever, the Steinhoff matter makes a case for the need to rotate auditors and long-serving board members in investee companies, an issue that the PIC has continuously raised. 

The PIC would like to state that it has engaged with Steinhoff consistently but has often not received positive feedback from the company. Specifically, the PIC has previously pointed out structural issues relating to the material shareholding of the Steinhoff and Wiese families, which are perceived to create the dominance of controlling shareholder representatives on the Board and as a result, potential conflicts of interest. 

The PIC has also raised concerns about the absence of a clear assessment of the risks introduced by the Steinhoff group’s acquisitive strategy as the company has become progressively complex. 

Whilst the PIC has tried to use its position as a major shareholder to vote against some of the resolutions tabled at Steinhoff annual general meetings, the reality is that the PIC is only one amongst many shareholders who have voted differently on certain resolutions. 

The PIC, on behalf of the GEPF will continue to raise environmental, social and governance issues in all its investee companies for the benefit of their stakeholders. 

STATISTICAL REPORT 

TOTAL ELIGIBLE VOTERS 68 447 

(SANDF) 65 116 

(SSA) 3331 Total Stamped Ballots (Votes Cast @ 10%) 7535 

Total Number of Valid Votes (Candidate Distribution) 6057 

Total Number of Invalid Votes (Captured on System) 1478 

NO. CANDIDATE CATEGORY SEX POSITION 

1 COETZER, COL. WILHEN JOHAN PIETER SANDF Male TRUSTEE 

2 MAQHUBELA CPL., WELCOME THOBILE SANDF Male SUBSTITUTE TRUSTEE

The Government Employees Pension Fund (GEPF) is extremely perturbed by the latest announcement by the Public Investment Corporation (PIC) that it has suspended its Executive Head of Listed Investments, Mr Fidelis Madavo and the Assistant Portfolio Manager, Mr Victor Seanie, following a preliminary investigation report that reflects the flouting of governance and approval processes with respect to the Ayo Technology Solution transaction. 

Of serious concern to the GEPF is that the PIC had assured the GEPF on numerous occasions and in correspondence that correct governance processes were followed with respect to the Ayo Technology Solutions transaction. The GEPF views this as a serious breach of trust. 

The PIC invested in Ayo Technology Solution as part of the listed portfolio mandate. Thus at the time of its listing, the investment in Ayo fell outside of the unlisted investment portfolio within which there are set governance processes and there are limits set for the PIC to engage the GEPF. 

Although the total unlisted investments portfolio comprises less than 5% of the total assets of the Fund, it represents a significant amount of funds. These are funds that the GEPF invests into, contribute to the real economy of the country and to drive transformation but still aiming to realise it main objective of maximising returns. When the actions of officials bring this intention into question, it undermines the objective to invest in the real economy of the country and may lead to a review that may deprive the economy of greatly needed investment. 

Despite the apparent failures on this and other investments, the overall performance of the PIC as an asset manager remains positive and in line with agreed criteria. Nonetheless, the GEPF continues to heighten its monitoring and oversight. 

The GEPF requests of the PIC Board to urgently finalise its investigations of alleged impropriety with respect to the Ayo transaction and others and take appropriate action where it is warranted. END/