Telkom RF to launch Rockland investigation
Telkom Retirement Fund (TRF) says it will launch an independent investigation into Rockland Investment Management, which holds R72 million of its cash.
On August 20, the Western Cape High Court granted an order to put the Rockland group under provisional curatorship after an interim order was brought forward by the Financial Services Board (FSB) alleging that certain senior members may be operating as an unapproved collective investment scheme.
Telkom Retirement Fund invested approximately R60 million with Rockland Investment Management in 2009, which is currently valued at R72 million.
The Rockland investment represents 0.2% of the total investment assets of the TRF, which stood at R30 billion as at 31 July 2012.
The TRF noted that the FSB has provided the group with a copy of their report. “The TRF is in the process of considering the contents of the report and the potential impact on the TRF. The TRF is taking the appropriate action to safeguard the interests of its members. We are also working closely with the FSB in this regard,” it said in a statement.
“We have decided to launch an independent investigation so that we can obtain a clear understanding of why Rockland Investment Management has been placed under provisional curatorship,” the chairperson of the TRF said.
“We want to avoid ambiguous reporting and speculation on this complex matter. We are also working closely with the FSB in this regard.”
The chair assured the fund’s members that the trustees follow a stringent due diligence process when considering any investment, regardless of the size of the investment is in relation to the total assets of the TRF.
“In this particular case, the due diligence was extended even further, which confirmed that Rockland’s auditor was reputable and that the valuator of the investment asset with Rockland had the correct credentials. Furthermore, a Deeds Office verification process showed that the investment asset existed, and in fact still exists today.”
“It is important to understand that Rockland has been placed under provisional curatorship, and has not been liquidated. This means there is an investigation into the current value of the assets and the structure in which they are held. It does not mean that the assets no longer exist,” the chairperson said.
Related article
Investors “wait and see” on Telkom
Further Telkom pain on the way?
Loading ...