The Eskom Megawatt Park headquarters in Johannesburg. Picture:BLOOMBERG/WALDO SWIEGERS
The Eskom Megawatt Park headquarters in Johannesburg. Picture:BLOOMBERG/WALDO SWIEGERS

Ndabe Mkhize’s employer, the Eskom Pension and Provident Fund, was established to manage the retirement savings for Eskom workers (“Institutional investors have financial might to change mindsets and investment patterns”, September 14).

Like all other pension funds, there are named beneficiaries with legally equivalent liabilities. The fund is regulated by the Pension Funds Act, and remains accountable by testing its solvency every few years.

Mkhize’s desire to make impactful investments is better suited to a government-sponsored sovereign wealth fund or endowment, where the beneficiary is the wider society, with variable liabilities (or desires) and not subject to strict regulation or solvency requirements.  

Let us not confuse these two entities, as blurring the lines will only lead to poorer accountability and transparency. The ultimate impact will only be worse-off retirees.

Anthony Asher, Orange Grove

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