File photo: Nearly six in ten of those who loaned money have written off all or some of the debt.

JOHANNESBURG - Government is moving forward with and introducing a new all-embracing pension fund.

There are concerns between government and other social partners that such a fund could be open to political abuse, according to reports. 

The new pension will include all current existing pension funds that includes  public and private, that is estimated to be valued at R3-trillion.

This new National Social Security Fund will require employers and employees to pay 12% of their income per annum.

Unemployment Insurance Fund will also be included.

In order for the fund to be used appropriately social partners must be involved. This is to ensure that there is no misappropriation.

An example of this could be the bailout of SAA. 

Fedusa, General Secretary Dennis George said: “We must have direct representation for labour on all the structures, including on how the money will be invested.

"If you look at the problem that we are currently facing with the government employee fund and PIC. Labour is on the GEPF as trustees but when it comes to the investment part labour has slipped up. Therefore, there’s no labour representation, so we don’t always know the inside of what will happen.”

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“You need good and clean governance in order to manage it in a proper way. In the current form with our SOEs you can’t rule out that those concerns are justified. But it can’t deter you from doing something good based on the fears of what might be happening,” said Cosatu general secretary, Bheki Ntshalintshali.

“First there must be agreement and that’s why it took so long. Secondly is to look structure by structure which parts can be easily integrated. Perhaps start by the low hanging fruits. Those that can fully integrate in an effective manner without disrupting too much. The challenge is that there’s already a lot of vested interests. There are institutions, there are beneficiaries. There are those promoting their institutions.”