Absa`s involvement with the Joint Municipal Pensio
Absa Group Ltd
JSE Code ASA Issuer Code AMAGB
ISIN Number ZAE 000013389
Absa`s involvement with the Joint Municipal Pension Fund
Recent media reports intimated that the Joint Municipal Pension Fund (JMPF) has
accumulated losses as a result of trading in agricultural futures. It was
suggested that Absa was at risk as a result of this. The following are the
salient points:
Absa is the primary banker to the JMPF.
Absa is a clearing member of SAFEX. JMPF appointed W J Morgan & Ass (Pty) Ltd
(WJM) to act on its behalf. As WJM is a non-clearing member of SAFEX, WJM
appointed Absa as clearing agent on its behalf.
Absa did not hold a mandate to trade on SAFEX on behalf of JPMF. This function
was outsourced to WJM.
As a clearing member of SAFEX, Absa has primary responsibility to settle margin
calls.
The JMPF remains responsible for any losses that may arise from this position.
Furthermore, the JMPF is responsible for the ongoing management of positions.
As banker to JMPF, Absa is providing finance to JMPF in order to cover a portion
of the margin calls. This decision is based on applying normal credit criteria.
The regulatory approval required to provide facilities to the JMPF has been
obtained.
Absa is comfortable with its level of facilities to the JMPF and its related
security position.
Absa is not responsible for any trading losses or profits incurred by JMPF and
carries credit risk in its normal course of business.
Absa reiterates its statement on the Securities Exchange News Service on 24
February 2003 that it is satisfied 2002/2003 financial performance will be in
line with guidance given to the market.
Issued by Investor Relations
Absa Group Limited
27 11 350-4061
Further inquiries : Steve Booysen
Group Executive Director, Absa
27 11 350-3047
Friedel Meisenholl
Managing Executive
Credit and Risk Management Organisation, Absa
27 11 350-4229
Date: 06/03/2003 05:19:02 PM Supplied by www.sharenet.co.za
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