South Africa’s Transport Sector Retirement Fund is facing fresh allegations of possible corruption after a deal involving €10 million euros (R160 million) for a property supposedly owned by the fund in London, was cited as one many investment deals that are questionable.
The property was purchased in 2008 but the allegations over its irregular procurement have just recently emerged.
The Fund recently changed its name from the ‘Road Freight and Logistics Industry Provident Fund’ (RFLIPF) to the ‘Transport Sector Retirement Fund’ because the endowment expanded its sphere of operations to encompass the country’s broader transport sector.
It is alleged that Joe Letswalo, the Fund’s Principal, used a now liquidated company to execute the deal and made a massive commission for himself.
The allegations contained in an 8-page dossier say various attempts by the current board to get clarity on the ownership of this property have proved fruitless.
“The executive, Joe Letswalo, (has total control of Investment mandates. He decides which Asset Managers are appointed to manage RFLIPF’s R7 billion (over €400 million) in Assets,” read the report.
RFLIPF has now joined a growing list of pension fund schemes in South Africa that have made headlines in recent weeks on corruption allegations.
The Fund was established to provide members of the road freight and transport industry with adequate retirement and risk benefits.
RFLIPF is yet to comment on the matter.