SOUTH AFRICA – The South African parent company of UK actuaries Lane Clark & Peacock has become embroiled in a case involving the alleged illegal use of pension fund surpluses.

Two former Alexander Forbes employees have been arrested in connection with surpluses amounting to R213m (€27.9m).

Former actuary Peter Martin* and consultant Neil van Hees, were arrested following a probe by the Financial Services Board (FSB).

According to a statement by the FSB, seven individuals and institutions have been charged on nine counts of fraud and theft, which took place over an eight-year period.

The charges relate to the misappropriation of surplus pension fund assets of numerous schemes supervised by the FSB.

The accused appeared in the Johannesburg Commercial Court last Wednesday, but the matter has been postponed until August 1.

Alexander Forbes managing director for Africa Peter Moyo stressed the group was not one of the seven under investigation.

“There are no charges against Alexander Forbes,” he told IPE. “Alexander Forbes did not benefit financially of this activity involving the repatriation of pension surpluses.”

Moyo told IPE he does not yet know on what charges Martin and Van Hees were arrested. However, he stated that if Alexander Forbes as a business is implicated in court proceedings in the future, it might provide assistance for them.

“It will be an issue to look at,” he said.

LCP had no additional comment on the matter.

*Please do not confuse Peter Martin mentioned in this article with Aon actuary Peter Frederick Martin, who is based in the UK.