Public hearings on PIC bill to go ahead today

This despite bid to stop amendment bill

Public hearings on the Public Investment Corporation (PIC) Amendment Bill in the select committee on finance in the National Council of Provinces (NCOP) will go ahead today, amid fears of a lastminute bid to stop its passage.

The bill, which amends the governance arrangements of the PIC by adding trade union representatives to the board and legislates for public transparency of its investments, was passed by the National Assembly two weeks ago.

The NCOP, which must also approve the bill, began processing it a week ago. The PIC invests more than R2-trillion on behalf of the Government Employees Pension Fund (GEPF) as well as other government social funds.

Several of its investments as well as the conduct of its executives and directors are under scrutiny at a commission of inquiry, headed by retired judge Lex Mpati. Mpati’s commission, which was given its terms of reference by President Cyril Ramaphosa, is also charged with making recommendations on the governance arrangements of the PIC.

Two weeks ago, Mpati wrote to finance minister Tito Mboweni expressing concern that the bill would be processed before the commission had completed its work. Chairperson of parliament’s standing committee on finance Yunus Carrim said that by the time Mpati wrote to Mboweni, the committee – which initiated the bill itself – had already deliberated extensively on whether to go ahead and unanimously decided that it would. “Constant allegations of wrongdoing in the PIC, the failure of the board to provide credible answers to our committee, the inertia of National Treasury and demands from the trade unions and civil society for action from our committee,” were among the reasons Carrim said led to their decision. “Parliament’s lawyers pointed out that it would be inappropriate to suspend a bill because of a request from a commission appointed by the executive and would set a dangerous precedent,” he said. Following its successful passage in the National Assembly, the bill will now be processed by the NCOP, which will examine it in its own right.