South African Investment Firm Looted Pension Fund With Insider Information
President Jacob Zuma’s surprise sacking of South Africa’s finance minister at the end of 2015 sparked economic panic: The rand plunged to a record low against the dollar and even the normally steady bond market roiled.
But one investment company, a little-known boutique operation, raked in at least 133 million rand (US$9.2 million) by trading on the turmoil. Related deals under investigation may have raised the total profit to as much as 500 million rand (US$32 million) as the country cycled through three finance ministers in just four days.
Evidence uncovered by OCCRP shows that the firm in question, Regiments Capital, most likely knew for weeks that respected Finance Minister Nhlanhla Nene would be dismissed in December 2015.
The firing appeared abrupt to the rest of the world, but not to Eric Wood, then one of Regiments’ three directors. Weeks beforehand, Wood called a meeting with a senior manager at Regiments.
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