New accusations against scandal-hit pension provider Allra
The scandal-hit pension company Allra has transferred SEK 150 million worth of Swedes’ savings to a subsidiary in Dubai, according to the Swedish Pensions Agency.
In a statement given to the Stockholm County Court the Pensions Agency claims that Allra had started its Dubai subsidiary with the sole purpose of transferring savers’ money to the company’s owners.
According to the statement, the Dubai company received nearly SEK 150 million for buying securities for three of Allra’s funds within the PPM system, under which Swedes are given tax incentives to save privately to top up their pensions.
“This appears to be a set-up with the purpose of generating a profit rather than adding value,” press secretary Jimmy Larsson Hagberg at the Pensions Agency told Swedish Radio.
However, Allra’s CEO Alexander Ernstberger, wrote in an email to Swedish Radio that the Pensions Agency was mistaken, and that the court statement contained factual errors. The Pensions Agency “appears to lack understanding for how the industry works. All funds have costs for trading with securities regardless of whether that takes place internally or externally,” he wrote.
Swedish Radio earlier revealed that Allra did deals on shares worth hundreds of millions of kronor with Oak Capital, despite links between management at the two companies. On Monday this week, it was revealed that a senior civil servant in Sweden’s finance ministry was closely involved in some of those questionable deals.
The revelations led the Swedish Pensions Agency this month to expel the fund from the PPM system.
Before it was expelled, Allra was the largest dedicated pensions provider in the PPM system, managing 20 billion kronor's worth of pensions investments for 180,000 people.