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Nhlanhla Ncaca

THE acquisition of Fedsure by Investec and the subsequent transfer of some of Investec’s Employee Benefits business to Liberty has left some beneficiaries marooned.

Three Gauteng siblings have been struggling to make ends meet despite their mother having nominated them as beneficiaries of her Fedsure Life policy.

Thoko (26), Amanda (19) and Malose Monama (17) found themselves in a tight corner after the transition period. At the time of their mother’s death in June 1996, the children were aged 14, 7 and 5 and their grandmother, Anna Monama, was appointed as their legal guardian.

Their mother, Magdeline Monama, worked for a franchise, Spif Chicken, and contributed to the company’s provident fund, which was underwritten by Fedsure Life.

In 2001, Investec acquired the entire issued share capital and claims against Fedsure Investment Limited (Fedsure) and International Limited (Fedsure International) from Fedsure Holdings Limited.

In 2003, Liberty Group acquired some of Investec Employee Benefits business. Monama had a capital amount of R24 630 when she died and she had nominated her mother and her children as beneficiaries.

Because the siblings were minors at the time of their mother’s death, Fedsure Life set up a trust account and R20 000 was invested. It was agreed that the monthly interest accumulated on the invested capital would be paid to the guardian for the children’s maintenance.

The grandmother received a lump sum payment of R4 630 and the interest on the trust account was paid out to her as promised. She died in September last year.

Hotline has in its possession a letter advising the guardian about the payment terms. It states that the children will share the capital when they have all turned 21.

Thoko has turned 21, but still cannot access the money because the trustees will only release the funds when all the siblings turn 21.

A relative, Koko Monama, contacted Hotline after struggling to get assistance from Liberty Life.

Monama said she contacted the company and reported the plight of the siblings but that Liberty was reluctant to assist.

“I cannot recall the number of times I have contacted Liberty Life.

“No one has ever explained to me what the status of the policy is.

“The death of the guardian complicated things further because we do not know what is happening with the proceeds,” said Monama.

She contacted Fedsure trustees on various occasions but the company referred her to Liberty Life.

Liberty Life advised Monama to contact Westgate Brokers but she could not get hold of the company. She could not explain the relationship between Liberty Life and Westgate Brokers. In November last year, she contacted Liberty Life and the company finally agreed to release the money and when it did not she decided to contact Hotline.

Erica Ntlhane, public relations officer for Liberty Group, referred Hotline to Fedtrust and explained that the trust was set up before Liberty Life took over. Fedtrust are trustees of the Fedsure Life policies.

She said Fedtrust confirmed receipt of the R20 000 that was paid out to them in 1996. Ntlhane said payments to the guardian were stopped after she failed to respond to letters sent to her by the trustees.

She could not state the exact date when the payments were stopped.

Ntlhane provided Hotline with the email address for the representative of Fedtrust.

“The contact person at Fedtrust is Pontsho. Regretfully we were unable to verify Pontsho’s surname,” said Ntlhane.

At the time of going to press Pontsho had failed to respond to Hotline’s emailed enquiry.

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