Cosatu’s idea for assisting Eskom will come at a huge cost for future generations
11 February 2020 - 17:04
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
When a poor family must pawn its possessions to pay down debt we call it a tragedy. When a man cashes in his pension early we call it a pity or irresponsible. But when Cosatu proposes the same with the Public Investment Corporation’s (PIC) managed pension funds, we call it a social investment and applaud it.
Cosatu, it should be recalled, was complicit at many levels in the ravaging of Eskom. Now it makes anti-privatisation and crony employment demands, which caused the problem in the first place. There is a name for those who repeat their actions but expect a different result — they are mad.
In 20 years, R250bn will be worth R1-trillion. For Cosatu to say to its members that because their benefits are defined they will not be affected is to forget future generations. The spending of other people’s money, apparently even unborn children’s money, has an honoured place on the socialist agenda.
We may call this a zero-coupon bond. Cosatu will want it listed as a pension fund asset. But an asset whose recoverability is doubtful and certain to offer zero yield is no investment. It would take a Steinhoff to call it so.
Barry Hay Parktown North
JOIN THE DISCUSSION:Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail tobusday@bdfm.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Spending unborn children’s money
Cosatu’s idea for assisting Eskom will come at a huge cost for future generations
When a poor family must pawn its possessions to pay down debt we call it a tragedy. When a man cashes in his pension early we call it a pity or irresponsible. But when Cosatu proposes the same with the Public Investment Corporation’s (PIC) managed pension funds, we call it a social investment and applaud it.
Cosatu, it should be recalled, was complicit at many levels in the ravaging of Eskom. Now it makes anti-privatisation and crony employment demands, which caused the problem in the first place. There is a name for those who repeat their actions but expect a different result — they are mad.
In 20 years, R250bn will be worth R1-trillion. For Cosatu to say to its members that because their benefits are defined they will not be affected is to forget future generations. The spending of other people’s money, apparently even unborn children’s money, has an honoured place on the socialist agenda.
We may call this a zero-coupon bond. Cosatu will want it listed as a pension fund asset. But an asset whose recoverability is doubtful and certain to offer zero yield is no investment. It would take a Steinhoff to call it so.
Barry Hay
Parktown North
JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to busday@bdfm.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Inquiry outcome needs to push PIC in right direction to benefit the economy
CAROL PATON: Whichever way the Eskom problem is solved, the taxpayer is the loser
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Cosatu’s rescue plan not the way to go, warns BNP Paribas
SA SME Fund invests in A2Pay to finance spaza shops
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.