Johannesburg - John Oliphant, the principal executive officer of the Government Employees Pension Fund (GEPF) who was suspended earlier this month, has recused himself from serving on several high profile governance-related organisations until the GEPF’s current investigation into allegations against him has been finalised.
Oliphant, who has been a major driving force in efforts to improve transparency and accountability within the pension fund industry, said in a statement issued yesterday: “I have opted to recuse myself from the institutions until such time that I have cleared my name and that the process currently under way within the GEPF has been finalised; the outcome of which I am confident will exonerate me.”
Last week ANC MP Arthur Moloto, the chairman of the GEPF’s board of trustees, confirmed that Oliphant had been suspended ahead of a disciplinary inquiry into alleged unauthorised signing of contracts. The news shocked not only the local pension fund sector but also the global industry, where Oliphant was well known for his efforts to promote responsible investment by international investment institutions.
The news of his suspension came just days after Oliphant had hosted the annual UN-backed Principles for Responsible Investment (PRI) conference in Cape Town. The conference was attended by more than 300 delegates representing $34 trillion (R334 trillion) of global investment funds.
Oliphant also played a critical role in setting up the Code for Responsible Investment in SA (Crisa), which aims to use voluntary disclosure by pension fund investors to encourage adherence to responsible investment practices.
In yesterday’s statement, Oliphant said that as a result of the media reports about his suspension there had been interest in his role in the various industry bodies such as his participation in the UN-backed PRI, his position in the Principal Officers’ Association (POA) and his chairmanship of the Committee for the Code for Responsible Investment in SA.
“These institutions have been critical in driving issues of improved governance within the asset owner community [pension funds] and they continue to play an important role. I serve these organisations voluntarily with no compensation because I truly believe in their mission and vision: to improve the levels of governance and active ownership with the pension funds.
“To this end, these institutions have made significant steps, but work remains to be done to improve the overall levels of governance within pension funds,” he said.
Oliphant went on to say that he had decided to recuse himself from the institutions because “it is important to me that PRI, Crisa and POA continue to pursue their mission without being distracted by questions relating to my situation at the GEPF”.
Ansie Ramalho, the executive director of the Institute of Directors, which is closely involved with Oliphant in the Crisa initiative and the PRI, told Business Report yesterday that everybody who knew Oliphant “cannot but be stunned by his suspension”.
Ramalho said Oliphant had an excellent reputation not only in South Africa but internationally for his efforts to promote the principles for responsible investing. She said that without any first-hand knowledge of the facts, it might have been that the GEPF board had no choice other than to suspend Oliphant and inform the public. She noted that it was good for the board to hold the executive head accountable.
“However, as far as the actual process is concerned there are other factors that the board should take into account before resorting to suspension… firstly fairness to the individual concerned who may suffer tremendous reputational damage even if not found guilty of the offence; and secondly the reputational damage to a public institution on which many are reliant for their livelihood.” - Business Report