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Vavi’s federation condemns use of pensions to bail out SOEs

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Johannesburg – Newly-formed South African Federation of Trade Unions (Saftu) has raised concern over the bailout of failing state-owned enterprises (SOEs) with government employee pensions.

The federation, led by Zwelinzima Vavi, issued a statement on Thursday following a report by Moneyweb that the Government Employees Pension Fund (GEPF) has paid out billions to Eskom through the purchase of the power utility's bonds.

The report indicates that the GEPF purchased an additional R8.3bn in Eskom bonds in 2016 and by March 2016 held R73.7bn worth of bonds. The GEPF has financed the majority of Eskom’s debt, Moneyweb reported.

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