No sinister agenda at FSB
The Financial Services Board is a 24-yearold institution hailed internationally for the prudent manner in which it regulates the financial services industry in SA. Recently, there have been several allegations aimed at casting aspersions on that long-held record of integrity and transparency. In January 2016, the media reported on issues raised by the deputy registrar of pension funds, Rosemary Hunter, regarding the process of closing down dormant pension funds between 2007 and 2013 ( Features January 28February 3).
While the full scope of Hunter’s allegations will be dealt with in court, the independent FSB board has investigated her concerns through a process that included a retired judge of the constitutional court, Kate O’Regan, audit firm KPMG and other relevant experts. Although the investigation is not yet complete, a preliminary report from O’Regan shows that there is no evidence to suggest any improper conduct on the part of FSB officials at the time of closing down these funds.
This preliminary report is available to all parties concerned, including Hunter, with the proviso that they sign confidentiality agreements, as required by section 22 of the FSB Act. To date, Hunter has not signed this agreement. The FSB takes any allegations relating to corruption extremely seriously and we have addressed these allegations with both urgency and determination to fully investigate them.
Another issue that has been reported on is the unfounded allegation made by a former employee, Mabulenyana Marweshe, who claims to have “blown the whistle” on alleged corruption in the awarding of an internal audit tender to audit firm Sekela Xabiso.
The allegations and Marweshe’s claims of victimisation are also strongly rejected. The FSB has put in place an additional tracking system for all advertised FSB bids which provides an early warning for bids approaching the end of their validity period.
The FSB adheres to the highest standards of corporate governance, with no tolerance for corruption. As a public entity, it is also stringently monitored and we are guided by recognised accounting practices (SA GRAP), the Public Finance Management Act and the King 3 code of governance. In the 2014/2015 financial year — as with other years — the FSB has received an unqualified audit from the office of the auditor-general.
As concerns our annual report, it is unfortunate that a 23-year-old tradition of having FSB executives presenting the annual report to the standing committee on finance before its publication on the FSB website has led some to hunt for a sinister agenda where there is none. Despite these distractions, we will continue to fulfil our mandate and uphold our reputation as a local and international authority in our field.