PSCU warns against WIP Group Proposal, calls for protection of public servants’ pensions

The Public Service’ Commercial Union of South Africa (PSCU) has formally called on the Ministers of Finance and Public Service and Administration to withhold support for the Workers Invest Platform (WIP) Group, warning that the proposal poses serious risks to the financial security of millions of public servants.

In a detailed letter addressed to Ministers Enoch Godongwana and Inkosi Mzamo Buthelezi, PSCU Secretary-General Tahir Maepa expressed deep concern over the initiative, which has sought endorsement under the guise of “worker empowerment.” The union argued that the WIP Group, a private company, aims to gain control over core pension benefits, creating a conflict of interest that threatens to divert public funds into high-risk ventures.

PSCU highlighted that the Government Pensions Administration Agency (GPAA) is already undergoing stabilisation amid allegations of financial misconduct. Introducing a complex and opaque investment vehicle at this stage, the union warned, would expose pension funds to further looting and undermine efforts to restore fiduciary integrity.

The union further criticised the WIP Group for advocating direct access to GEPF assets while bypassing the established frameworks of the Public Investment Corporation. “The primary duty of the GEPF, GPAA, PIC, and National Treasury is to pensioners,” the letter stated. “Investment decisions must be made on rigorous financial analysis and fiduciary responsibility, not lobbying by politically connected consortia.”

PSCU urged the Ministers to publicly decline any letter of support, commit to transparent and inclusive processes for any public sector investment reforms, and reaffirm that all GEPF investments must adhere to fiduciary and financial merit principles.

“South African workers have suffered enough from large-scale corruption,” the union said. “Their life savings cannot be gambled on another risky financial experiment.”

The letter, copied to Parliament’s Finance and Public Service committees, the Public Protector, and leadership of the GPAA, PIC, and GEPF, makes clear that PSCU will closely monitor government responses and pursue all legal avenues to safeguard public funds.