FOR WHOM THE PIC BELL TOLLS
There is an undated statement on the website of the Government Employees Pension Fund (GEPF) that seeks to reassure the pensioners who rely on its payouts that their funds are safe from the clutches of politicians. It was issued around May, when SA Airways was casting around for yet another bailout to pay for the follies of its leadership. It might as well have been issued this week, when the finance minister repeated he may have to instruct the GEPF to rescue SAA.
Malusi Gigaba is desperately trying to find cash to continue paying the salaries of the 11,500 people who work for SAA, and whenever he is questioned where he will get the cash, Gigaba quickly mentions the funds held by the Public Investment Corp (PIC) on behalf of government employees and pensioners.
“The GEPF would like to assure its members, pensioners and beneficiaries that the fund has not received or been approached with such a proposal and no discussions have been held with the GEPF on this matter, therefore we urge all our members and pensioners not to panic or read too much into this speculation,” said the GEPF, whose funds are managed by the PIC. “The GEPF, through the PIC, receives many requests all the time and rigorously considers the merits of all investment opportunities and invests prudently in the best interests of its members, pensioners and beneficiaries.”
It does not escape any worthy observer that the GEPF, in its futile attempt to reassure its beneficiaries, stayed clear of making promises it cannot keep. Nowhere does it say it would not fund SAA, should it be asked. For it cannot keep that promise. The GEPF’S assets are managed by the PIC — all R1.6 trillion of it.
And Gigaba is completely in charge of this, and controls and appoints the directors of the PIC, even though they would like us to believe they are inde- pendent of government interference.
But history shows us the PIC will fall over itself to rush to SAA’S rescue should the minister, whose deputy is chairman of the PIC board, so much as whisper the order. The public relations machine will be unleashed to blow hot and cold excuses about how responsible the PIC’S investment considerations are.
After all, the PIC did not let facts stand in the way of its story after it sunk hundreds of millions of its beneficiaries’ hard-earned money to buy a major stake in perennial loss-making mining company Lonmin. Even more bizarre was the PIC’S investment in oil exploration companies Sacoil and in 2014 it lavished a R3bn “investment” on Camac Energy. At Sacoil the PIC is now the largest shareholder, as it is at Lonmin, and at cement-maker Afrisam.
Corrupt practices
These were politically directed “investments” that hold no promise of a return. Government incorrectly feels it can do as it pleases with pensioners’ money.
Now that the corrupt practices of various SAA boards and executives have caught up with the stateowned airliner, the PIC is the only saviour. Reluctantly the fund manager will hand over billions more, as it has done with the SA National Roads Agency, where it is now the largest bondholder after the motoring public revolted and refused to pay e-toll fees.
As Gigaba is now racing against time to find the R6.9bn of debt repayments due at the end of September, the beneficiaries and pensioners of the GEPF will pay with their savings for the corruption that continues to drain SAA. And the bankrupt Petrosa and the SABC are not far behind in the queue for handouts.
So the PIC cash till shall ring not for its beneficiaries, but for the powerful, clueless administrators who keep throwing good money after bad . . . until the IMF do us part.
Nowhere does it say it would not fund SAA, should it be asked. For it cannot keep that promise