DA seeks changes to PIC act
Moves are afoot to propose far-reaching amendments to the Public Investment Corporation Act to enhance transparency and strengthen the asset manager’s board.
Moves are afoot to propose farreaching amendments to the Public Investment Corporation (PIC) Act to enhance transparency and strengthen the asset manager’s board.
The initiative comes amid mounting concern that the PIC has become the target of those with an eye on the R1.87-trillion it has under management.
The PIC manages investments on behalf of the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund (UIF) and the Compensation Fund, in addition to a number of smaller funds.
CEO Dan Matjila has been the subject of a smear campaign, which was seen as an attempt to oust him in order to gain control of the PIC.
Finance Minister Malusi Gigaba is also concerned about the politicisation of the PIC and announced on Friday that he had written to Matjila and the board, asking for a list (within two weeks) of all the PIC’s beneficiaries and the investments, which will be made public.
He has also asked for a forensic investigation into concerns about irregularities. The list of investments must include details of directors and shareholders of companies.
Gigaba said he would engage with trade unions on their call to have a labour representative on the PIC board.
He said these measures were in the interests of transparency, but the DA’s proposed bill wants to ensure that even greater transparency is embodied in the PIC’s governing act.
The opposition party’s proposed bill would put an end to the appointment of the deputy finance minister as the chairperson of the PIC and provide for a new method for the appointment of the chairperson, in which Parliament would play a significant role.
It also provides for the appointment of representatives of the PIC’s major clients, including the GEPF and the UIF, to a 12-person PIC board. Two board members will be executive directors and one a representative of the Treasury.
DA spokesman on finance David Maynier said the proposed bill built on the party’s campaign to ensure the PIC made public particulars of all “unlisted investments”, which were worth about R45bn.