Copper miners search for pot of gold

THE trail of N$116,9 million “lost” during the liquidation of Tsumeb Corporation Limited (TCL) a decade ago has led a group of around 1 000 workers from the defunct copper-mining company to pursue legal action against those they claim responsible for stealing it.

The alleged thieves cited by the workers, who are due to meet them in the District Labour Court for a Rule 6 meeting on July 24, include Namfisa and insurance companies Alexander Forbes and Momentum Life Assurance Ltd. A Rule 6, according to the Labour Act is the last resort in trying to reach an amicable solution before the floor is opened for legal action.The money the workers seek was allegedly contained in TCL’s pension fund, and was supposedly destined for their pockets before disappearing off the face of the earth.While the workers have long been making the same allegations to no effect, their recent act of taking their complaints to the private investigating group Workers Advice Centre apparently brought the results they were hoping for.According to the particulars of the workers’ claims, the Tsumeb Corporation Limited Pension Fund was created by the company to provide benefits to them at death, retirement or disablement, and for withdrawal benefit at resignation or retrenchment.The company was not permitted access to this fund.In June 1994, however, TCL’s owners, Goldfields South Africa, and the administrator of its pension fund, Southern Life (now Momentum Life), apparently entered into an agreement to change the rules so that the company could gain access to this money.This they apparently did by converting the TCL Pension Fund in South Africa to the Goldfields Namibia Provident Fund in Namibia, and applying to the Registrar of Pension Funds (now Namfisa) for an amendment to the existing pension fund rules to allow them access to the money.”The reason was that in South Africa such access by the employer to the fund would not have been permitted,” the workers’ written claim states.The Registrar of Pension Funds reportedly approved the company’s request on September 2 1996.After this TCL bled the fund dry, the workers claim, leaving them with nothing.The first recorded withdrawal from the fund – of N$49 million – was during November 1996 .This was apparently followed by two more transfers in March 1997 and March 1998, with N$35 million and N$32,9 million withdrawn respectively.TCL was then placed under provisional liquidation on April 29 1998.Alexander Forbes acted as liquidator of the Goldfields Namibia Provident Fund when this happened.With the company and both funds no longer in existence, the group has decided to claim damages from the institutions and persons involved in the initial agreement to change the rules of the fund.Besides Momentum, the Registrar of Pension Funds and Alexander Forbes, they are also suing the liquidator of the remaining capital of the TCL Pension Fund and the Goldfields Namibia Provident Fund, Bob Meiring, as the fourth respondent.Speaking to The Namibian yesterday, Namfisa Pension Funds Manager Eben De Klerk said he was aware of the fact that the then Registrar of Pension Funds did indeed provide for the withdrawal of “about N$117 million” from the workers’ pension fund by the company.He said that TCL reasoned that it had overpaid into the fund, and that the money was used during the liquidation process, among other things to pay severance packages to workers.”It’s unfortunate what happened.In today’s world it would not be allowed,” De Klerk said.He however dismissed the workers’ attempt to claim their losses from Namfisa and others, noting that previous attempts to take the matter to court had failed.Both Momentum and Alexander Forbes failed to respond to queries sent to them on Tuesday.Officials spoken to at Momentum referred The Namibian to Swabou Life, which last year took over a number of policies from the company, including presumably those affecting the former TCL workers.Swabou officials in turn referred The Namibian to Momentum South Africa, to whom they said the TCL files were handed.Officials at Alexander Forbes promised a detailed written response to the distraught group’s claims.The former workers are scheduled to hold a demonstration in Windhoek on Friday – a march which is set to culminate in front of the Sanlam Centre, where Namfisa is situated.The group yesterday received the July 4 date for the Rule 6 hearing, which cancelled out the previously proposed date for the case to go to court, which was August 4.A Rule 6, according to the Labour Act is the last resort in trying to reach an amicable solution before the floor is opened for legal action.The money the workers seek was allegedly contained in TCL’s pension fund, and was supposedly destined for their pockets before disappearing off the face of the earth.While the workers have long been making the same allegations to no effect, their recent act of taking their complaints to the private investigating group Workers Advice Centre apparently brought the results they were hoping for.According to the particulars of the workers’ claims, the Tsumeb Corporation Limited Pension Fund was created by the company to provide benefits to them at death, retirement or disablement, and for withdrawal benefit at resignation or retrenchment.The company was not permitted access to this fund.In June 1994, however, TCL’s owners, Goldfields South Africa, and the administrator of its pension fund, Southern Life (now Momentum Life), apparently entered into an agreement to change the rules so that the company could gain access to this money.This they apparently did by converting the TCL Pension Fund in South Africa to the Goldfields Namibia Provident Fund in Namibia, and applying to the Registrar of Pension Funds (now Namfisa) for an amendment to the existing pension fund rules to allow them access to the money.”The reason was that in South Africa such access by the employer to the fund would not have been permitted,” the workers’ written claim states.The Registrar of Pension Funds reportedly approved the company’s request on September 2 1996.After this TCL bled the fund dry, the workers claim, leaving them with nothing.The first recorded withdrawal from the fund – of N$49 million – was during November 1996 .This was apparently followed by two more transfers in March 1997 and March 1998, with N$35 million and N$32,9 million withdrawn respectively.TCL was then placed under provisional liquidation on April 29 1998.Alexander Forbes acted as liquidator of the Goldfields Namibia Provident Fund when this happened.With the company and both funds no longer in existence, the group has decided to claim damages from the institutions and persons involved in the initial agreement to change the rules of the fund.Besides Momentum, the Registrar of Pension Funds and Alexander Forbes, they are also suing the liquidator of the remaining capital of the TCL Pension Fund and the Goldfields Namibia Provident Fund, Bob Meiring, as the fourth respondent.Speaking to The Namibian yesterday, Namfisa Pension Funds Manager Eben De Klerk said he was aware of the fact that the then Registrar of Pension Funds did indeed provide for the withdrawal of “about N$117 million” from the workers’ pension fund by the company.He said that TCL reasoned that it had overpaid into the fund, and that the money was used during the liquidation process, among other things to pay severance packages to workers.”It’s unfortunate what happened.In today’s world it would not be allowed,” De Klerk said.He however dismissed the workers’ attempt to claim their losses from Namfisa and others, noting that previous attempts to take the matter to court had failed.Both Momentum and Alexander Forbes failed to respond to queries sent to them on Tuesday.Officials spoken to at Momentum referred The Namibian to Swabou Life, which last year took over a number of policies from the company, including presumably those affecting the former TCL workers.Swabou officials in turn referred The Namibian to Momentum South Africa, to whom they said the TCL files were handed.Officials at Alexander Forbes promised a detailed written response to the distraught group’s claims. The former workers are scheduled to hold a demonstration in Windhoek on Friday – a march which is set to culminate in front of the Sanlam Centre, where Namfisa is situated.The group yesterday received the July 4 date for the Rule 6 hearing, which cancelled out the previously proposed date for the case to go to court, which was August 4.