The Financial Sector Conduct Authority (FSCA) today filed papers in the North Gauteng High Court requesting the court to review and set aside the report by the Public Protector (PP), in which she made findings of impropriety and maladministration against the Financial Services Board (now FSCA) and its Executive Officer, Adv. Dube Tshidi. The PP’s report concerns actions dating back more than ten years, when several pension funds that had fallen victim to a fraudulent scheme (known as the Ghavalas scheme) were placed under the curatorship of Mr Antony Louis Mostert.
The review is sought on the basis that it is immediately apparent from the report that the PP’s findings and conclusions are entirely unreasonable. It is also our view that the manner in which she conducted her investigation renders the findings reviewable for perceived bias, bad faith and/or ulterior motives. The only other explanation for these failures is gross incompetence and negligence.
As the Authority tasked with regulating the conduct of financial institutions, we find it highly unfortunate that we now have to use funds received from the industry we regulate (in the form of levies) to seek to review what to us is an arbitrary and unnecessary report. This is a process that could have been avoided had the Public Protector simply applied herself to our submissions.