Fund dissolves Absa deal over late pay

Absa suffered a setback when the Private Security Sector Provident Fund pulled the plug on a R5.7 billion transaction to cut ties with the bank.

Johannesburg - Absa, a subsidiary of the Barclays Group, yesterday suffered a setback when the Private Security Sector Provident Fund (PSSPF) pulled the plug on a R5.7 billion transaction to cut ties with the bank.

The PSSPF said it decided to cut ties with Absa after the bank repeatedly ignored complaints that its members were not being paid on time.

PSSPF spokesman Robert Dube said both parties agreed to terminate the five-year-old relationship last August.

“The fund is not entirely satisfied with the service that Absa Consultants & Actuaries (ACA) has been providing… even after various interventions by the fund to try and remedy the service delivery. Existence of waiting period to the payment of clams, payments are not paid on time, not being able to update the funds and this causes members to complain and even taking the company to the ombudsman,” Dube said. “This has unfortunately not been remedied to the satisfaction of the fund.”

Dube said PSSPF could not commit to keeping the jobs of the fund administrators.

“However, there is a probability that the new administrator may require some of the ACA staff involved in the fund, however, hereto the fund is wary not to make undertakings or provide guarantees on behalf of the new administrator,” he said.

PSSPF is a contribution provident fund established in 2002 to give security employees peace of mind on their financial security when they retire. It is one of the largest provident funds on the continent providing the private security employees and their families with benefits for retirement, disability, death and funerals.

Absa yesterday said the transaction was terminated through mutual agreement.

A spokesman said: “Absa acknowledges termination of its contract to PSSPF. Absa will continue to fulfil its contractual obligations… until the end of the notice period. Bound by client confidentiality, Absa will not comment further.”

Barclays Africa’s share price rose 1.51 percent to close at R137.71 on the JSE yesterday.

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