RYK VAN NIEKERK: The contentious issue of prescribed assets was a prominent topic of discussion during an ANC webinar on Monday night regarding the party’s economic policy. During the webinar Enoch Godongwana, the head of the ANC’S economic transformation subcommittee, strongly denied that proposed changes to Regulation 28 are aimed to force pension funds to bail out struggling state-owned enterprises, or to fund a state-owned bank. Enoch Godongwana is on the line. Enoch, thank you so much for joining me. There seems to be significant uncertainty regarding the ruling party’s intentions with prescribed assets and changes to Regulation 28. What currently are the ANC’s policy position and plans regarding prescribed assets?

ENOCH GODONGWANA: Let me take you back. In Nasrec, which is a national conference, the resolution did not say we will implement prescribed assets. The resolution said we’ll investigate. Let’s start there first. That process is taking place – investigating that possibility. That’s a separate process. Another process which is taking place is a process where we are saying it’s not a prescription. It’s another process which questions whether there are any challenges with Regulation 28 which may inhibit institutional investors such as pension funds from investing in areas where you are likely to have high-impact development. That is the exercise we’re doing, which is parallel to the prescription. In that exercise we are in consultation with a number of people in the industry, among others Asisa [the Association for Savings and Investment SA] and some organisations which represent the pension funds. So the precise formulation and decision will be a product of that consultation.

RYK VAN NIEKERK: But there is currently a very negative perception among many people regarding the possibility of prescribed assets, and this possibly flows from distrust between the private sector and government. What are your views on the negative perceptions regarding the prospect of prescribed assets?

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