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MBABANE – They work under the same roof at Ingcamu Building in Mbabane but they are now at each other’s throat.

This is the story of the Public Service Pension Fund (PSPF) and the Financial Services Regulatory Authority (FSRA). FSRA has instituted investigations into the operations or affairs of PSPF.

FSRA, as a regulator for retirement funds and financial services providers, is responsible for ensuring that all retirement funds, fund administrators, investment managers and anyone associated with them, conduct their business in accordance with the law and principle governing the industry.

So far, the investigations, according to FSRA, have unearthed that huge loans were allegedly granted to entities without any loan agreements and supporting documents. It was also allegedly discovered that PSPF appointed an auditor without the approval of the Board at the tabling of the entity’s financial statement, which according to FSRA was in contravention of principles of corporate governance. The team of investigators from FSRA further found that PSPF allegedly took major investment decisions in relation to certain major acquisition without the involvement of its Investment Committee.

“The respondent (PSPF) disinvested large sums of funds from local financial institution to offshore destinations,” reads one of the finding made by FSRA.

FSRA Chief Executive Officer (CEO) Sandile Dlamini, in his affidavit, stated that the preliminary findings that had been already made, suggested that there was a need for more intensive investigation into certain other areas, not discounting the inspection that had been carried out.

The investigations, according to FSRA, is to, among other things,  determine where there were any irregularities in the manner in which assets were acquired, invested and/or disinvested on behalf of the fund and whether such acquisition, investments were undertaken in the best interest of the fund or its members.

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