Cape Town - Social Development Minister Lindiwe Zulu has withdrawn the green paper on comprehensive social security and retirement reform.
The fund proposal was gazetted about two weeks ago.
Under the proposal, all South Africans earning above a certain income level would have to pay between 8% and 12% of their salaries into the fund. The fund would be used to pay social and pension grants to citizens.
The paper reads: “The present social security system in South Africa falls short of its Constitutional requirements. The proposed reforms will be implemented over the short- to long-term period. There is a need to prioritise poverty interventions, focus on efficiency and equity challenges in the system and leverage on the electronic application system.”
Closing dates for public comments would have been December 10.
This raised many eyebrows, with Efficient Group chief economist Dawie Roodt telling Independent Media that the proposal appeared to be a back-door way of getting the public’s money.
Political analyst Protas Madlala said the proposal did not seem well-guided as the pool of unemployment in the country was high.
Reuben Maleka of the Public Servants’ Association (PSA) said that given the ongoing corruption and embezzlement of money in the country, the PSA would leave no stone unturned to stop the plans to establish another entity that politicians would shamelessly loot.
AfriForum threatened to challenge the matter in court.
Zulu’s withdrawal was gazetted on Tuesday.
When asked about the reasons for the withdrawal, Zulu’s spokesperson Lumka Oliphant said the department would issue a statement on the matter soon.
Political Bureau