SOUTH AFRICA - A senior executive of Alexander Forbes, the service provider which recently escaped corruption charges, has been criticised for advice given to two South African municipal pension funds whilst working as an actuary for NBC Employee Benefits.
Alexander Forbes' Geoff Nzau and Neo Mokoena, ex-marketing director at NBC, were criticised for their conduct during a private arbitration appeal hearing, but neither testified.
As a result of the appeal, the original award of R200m (US$26.9m) against NBC Employee Benefits and NBC Negotiated Benefits Consultants was reduced to R150m.
The funds claimed that NBC received a secret commission of R30m which was not disclosed to trustees, who had decided that no commission should be paid.
Bad advice and losses resulting from outsourcing pension payments to life assurance company Fedsure, which was acquired by Investec in 2002, were other claims levied against the NBC subsidiaries.
Initial hearings and tribunal determinations have been kept confidential in accordance with both parties’ agreement.
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State Street Global Advisors (SSGA) has been selected as the first index manager for the Asset Management Exchange's (AMX) passive funds.