Prescribing assets: IRR is 'stirring up panic' about ANC accessing pensions
Government is unlikely to force retirement funds to invest in specific projects through prescribed assets, says the Association for Savings and Investment SA (Asisa).
The body was responding to "the most recent attempt" by the Institute of Race Relations (IRR) to draw the association into the ongoing prescription debate.
Fears have been raised that government plans to force investors to put their money into specific projects, so that it could for example use pension funds to bail out embattled state-owned enterprises (SOEs) like Eskom
RELATED: 'Drop the ideological debates - use retirement funds, and start building!'
The ANC's Enoch Godongwana (head of Economic Transformation Committee) has said that the party is moving away from talk of prescribed assets, but still wants to find ways to unlock the country's pensions to assist with infrastructure goals.
How should this statement be interpreted?
The IRR seems to think it leaves a backdoor open for the ANC to get its hands on our pensions and has been lobbying against the idea.

At the same time, Asisa accuses the institute of trying to stir up investor panic when rationality is needed more than ever.
"Proposals to amend Regulation 28 of the Pension Fund Act to include a separate category for retirement funds to invest in infrastructure assets do not equate to prescription", writes Asisa CEO Leon Campher in a Moneyweb article.
Whitfield interviews Hermann Pretorius (IRR Deputy Head of Policy Research) about his concerns.
Pretorius outlines what he says is the fundamental problem with prescribing assets.
When property rights become so tenuous and so under attack that everything from immovable property to assets, the savings and pensions of ordinary people who played by the rules their entire lives... that then becoming essentially available to the government to use to bail out itself for its own failure.
Hermann Pretorius, Deputy Head of Policy Research - Institute of Race Relations
Economically also, if you have to to prescribe investment in something, that means there was an initial reason for that investment not being attractive and that would then be an uncomfortable investment to make at best.
Hermann Pretorius, Deputy Head of Policy Research - Institute of Race Relations
Pretorius does not believe this "danger" has passed.
I think we've all been around the block enough times to know that when a politician says something it isn't necessarily holy writ.
Hermann Pretorius, Deputy Head of Policy Research - Institute of Race Relations
We need to make sure that where such a policy is being considered it must be opposed not when it is already implemented and already having negative effects, but in the buildup to that in the debate while we can still make sure that the dangers are clear.
Hermann Pretorius, Deputy Head of Policy Research - Institute of Race Relations
Is the Association for Savings and Investment SA saying that the IRR is blowing the situation out of proportion?
Asisa CEO Leon Campher discusses the ANC's latest economic recovery plan and the body's upfront involvement in discussions.
We've been very fortunate to be part of Business for South Africa and engaged by Nedlac with all the social partners in all the presentations that were done to the president (that's labour, community, government and business). It was most encouraging that there was in excess of 90% alignment in all these plans.
Leon Campher, CEO - Association for Savings and Investment SA (Asisa)
If there were to be prescription, he says, it wouldn't solve challenges like moving to clean energy and attracting foreign capital.
Prescription just means you get further indebted and it will chase away capital and I think nobody has put that on the table.
Leon Campher, CEO - Association for Savings and Investment SA (Asisa)
It must not be confused with some debate around regulation 28 in terms of the Pension Fund Act which was put there to actually facilitate diversification.
Leon Campher, CEO - Association for Savings and Investment SA (Asisa)
Campher says while it is the IRR's democratic right to communicate with Asisa members, the institute is getting its message wrong.
Listen to the arguments in the audio below:

Source : https://www.123rf.com/stock-photo/south_africa_rand.html
More from Business

Windhoek beer ad banned in SA for entrenching 'toxic masculinity'
Teased for requesting lime with your beer? The Advertising Regulatory Board says the message is that 'real men drink real beer'.
Read More
Wine producers set to challenge alcohol sale ban in High Court
'Dialogue with govt is not working so as a last resort we decided to lodge an urgent application' - Vinpro MD Rico Basson.
Read More
'The Great African IP Address Heist' - 4m stolen, most from SA organisations
'You can sell them for a lot of money or you can lease them if you want to make an annuity income!' - MyBroadband's Jan Vermeulen
Read More
Would you invest in a blank cheque company?
Two stories that could point to trouble online and on Wall Street
Read More
Alcohol ban: Crisis looming for barley farmers reliant on beer production
A new harvest lies ahead and farmers are already paying to store unsold barley, 80% is traditionally destined for the beer market.
Read More
There are measures to minimise COVID-19 vaccine corruption, says Treasury
With no funding already set aside for the COVID-19 vaccination, Treasury has had to work with the Health Department to approve various deviation requests to ensure that monies were freed up for the programme.
Read More
Fixing “the Eskom problem” is going to require a serious restructure
Fixing “the Eskom problem” is going to take much more than just throwing good money at it – Eskom needs to be restructured.
Read More
IMF expects 5.5% global growth rebound thanks to vaccines, but SA lagging behind
'I guess the IMF is concerned about our lack of a vaccine rollout plan' says economist Kevin Lings on The Money Show.
Read More
[VIDEO] Ramaphosa urges rich countries to release 'hoarded' vaccines
President Cyril Ramaphosa criticised 'vaccine nationalism' in an address to the digital Davos World Economic Forum.
Read More
New series of free online courses to help young people boost employment chances
Giraffe has partnered with Unicef to train job seekers in those skills in greatest demand, targeting the youth and medium-skilled demographic.
Read MoreMore from Politics

ConCourt orders Zuma to appear at Zondo commision, must obey all directives
Eyewitness News reporter Theto Mahlakoana gives an update on the former president being ordered to testify.
Read More
SA to receive first batch of COVID-19 vaccine on Monday
Ministerial Advisory Committee on COVID-19 vaccines virologist and chairperson prof. Barry Schoub reflects on the vaccine rollout
Read More
Wine producers set to challenge alcohol sale ban in High Court
'Dialogue with govt is not working so as a last resort we decided to lodge an urgent application' - Vinpro MD Rico Basson.
Read More
Zondo inquiry continues to hear astonishing testimony about SSA dealings
Eyewitness News reporter Nthakoana Ngatane and legal journalist Karyn Maughan reflect on the Zondo Commission.
Read More
Ramaphosa appoints Ntshavheni as acting Minister in the Presidency
Small Business Development Minister Khumbudzo Ntshavheni will continue to perform her responsibilities as the Minister of Small Business Development while acting as Minister in the Presidency.
Read More
Fixing “the Eskom problem” is going to require a serious restructure
Fixing “the Eskom problem” is going to take much more than just throwing good money at it – Eskom needs to be restructured.
Read More
[VIDEO] Ramaphosa urges rich countries to release 'hoarded' vaccines
President Cyril Ramaphosa criticised 'vaccine nationalism' in an address to the digital Davos World Economic Forum.
Read More
Cosas protesters target early childhood development centre at private school
'When they realised Charterhouse School is closed, they focused on ECD with insults and lack of rationality' - Felicity Coughlan
Read More
EFF wants criminal charges against those implicated in Mufamadi testimony
Deputy Chief Justice Raymond Zondo has dismissed State Security Minister Ayanda Dlodlo's attempt to stop Loyiso Jafta's testimony.
Read More
Factionalism in ANC is dangerous for SA, must be faced head-on - Mufamadi
Former chairperson of a high-level review panel into the State Security Agency Dr Sydney Mufamadi reflects on his testimony.
Read More