South Africa: Eskom Pension Fund Grants Its Former CEO A R350 Million Investment Mandate

The Eskom Pension and Provident Fund is adamant that the deal concluded with its former CEO and Principal Officer S’bu Luthuli late last year is above board. But the lack of initial disclosure around the deal and the fund’s subsequent resistance to divulging any details on how it was concluded raises suspicions.

Following Business Maverick’s previous report on the transaction, and significant subsequent correspondence with related parties, the EPPF finally admitted via its public relations firm that it committed R350-million to Mpande Property Fund (with a Deed of Adherence being signed in September 2019).

“Details on this investment will be included in the FY2020 Annual Report, as the deed of adherence was signed after the 2019 financial year-end,” the EPPF says.

They say they “do not preclude anyone from transacting with the fund – so long as the investment or transaction makes economic sense…

“All investments, including the Mpande investment, are subjected to the fund’s rigorous assessment processes to ensure that they meet our investment criteria. However, in the case of Mpande, the fund took additional steps to ensure probity and impartiality in its assessment of the investment opportunity.

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