Minister’s pension not necessarily bad – economist

2010-03-05 13:33


Economic Development Minister Ebrahim Patel’s idea of using private

retirement funds to help finance development projects is not necessarily a bad

one, economist Mike Schussler said today.

This followed media reports that Patel was exploring ways of

investing private retirement funds in development projects by possibly issuing

development bonds.

“It’s not necessarily a bad idea but you need to be careful that

there is a positive return on the money,” Schussler said.

“In other words the development bond would have to pay more than


Economist Dawie Roodt, however, thought Patel’s idea was


“Who can guarantee a positive return on the money?” he asked.

“Politicians are not good at identifying winners and here we have

the idea that pension funds be forced to invest five percent of their savings

into a politically determined project.”

Roodt said while he was not against social investment, the correct

vehicle had to be used.

“And the correct vehicle is the Budget of the minister of


“Patel’s suggestion is nothing more than an additional tax,” he


Roodt said that pre-1994, pension funds had been required to invest

certain portions of their assets in government bonds.

“This was prescribed investment and fortunately we got rid of it,”

Roodt said.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.