Letter from the Minister of Finance dated 28 September 2004 to the

Speaker of the National Assembly, in terms of section 65(2)(a) of the

Public Finance Management Act, 1999 (Act No 1 of 1959), explaining

the delay in the tabling of the Annual Report of the Government

Employees Pension Fund for 2002-2003 and 2003-2004:

Dear Madam Speaker

In terms of the provisions of section 6A of the Government

Employees Pension Law, 1996 (Proclamation No 21 of 1996),

the Minister of Finance has been appointed as the interim trustee

of the Board of Trustees for the GEPF until such time as a duly

elected Board of Trustees (Board) has been appointed.

Section 9(1) of the Law provides that the Board shall in respect

of each financial year draw up annual financial statements for the

Fund and shall submit copies of such statements, duly audited in

terms of section 13 of the Law, to the Minister of Finance.

The statements mentioned in terms of section 9(2) shall consist

of—

* a statement of funds and net assets;

* a revenue account;

* a cash flow statement;

* notes to explain such statements;

* a report by the Board as referred to in section 10 of the

Law; and

* any such other statement that may be prescribed.

The statements are to be compiled in conformity with Generally

Accepted Accounting Practice (GAAP) and be accompanied by

a report of the auditors of the Fund as prescribed in section 13 of

the Law.

Section 9(6) further provides that the Minister of Finance shall

within 30 days of receipt of such financial statements, submit the

financial statements, report of the auditors and information

referred to, to Parliament together with such comments as the

Minister may wish to make.

The financial statements and reports required by Law for the

financial year ending 31 March 2003 have been compiled and

audited by the external auditors of the Fund, Deloitte and

Touché, Pricewaterhouse Coopers Inc. and Faizel Sondiyazi Inc.

The financial statements are presented are unqualified, in all

material respects, and fairly represent the net assets of the Fund

as at 31 March 2003 and the results of its activities and cash

flows for the year ended, in accordance with GAAPas applicable

to retirement funds, and the Rules of the GEPF.

You will note that on page 42 of the Annual Report the reasons

for the late submission of the Annual Report are explained.

They relate to problems experienced in relation to an accounting

policy change, the implementation of a new investment accounting

system as well as changes to the annual report to improve

disclosure and to reflect a more precise position of the Fund.

Due to the above-mentioned matters that annual report and

financial statements could not be submitted in the time period

required by section 13 of the Government Employees Pension

Law. Steps have been taken to ensure that the 2003/04 annual

report is published within the required legislative framework.

Apart from the above, no significant matters occurred after the

financial year had ended, up to the date of approval of the

financial statements, which could have a significant impact on

the financial statements of the Fund.

Kind regards