Daily Dispatch

PIC’s secret investment­s are unveiled

More than R1bn invested in Surve’s media


THE Public Investment Corporatio­n (PIC) has finally provided parliament’s standing committee on finance with a comprehens­ive list of the unlisted investment­s of its Isibaya Fund, which totalled R44.6-billion as at end-March 2016.

This came as the DA put pressure on the PIC to disclose details of its unlisted investment­s, especially in Iqbal Survé’s Independen­t Media, and its investment in a company called Opiconsivi­a.

DA finance spokesman David Maynier has been pushing for the release of the informatio­n for several months in the interest of transparen­cy.

The list of the Isibaya Fund’s investment­s include a R166millio­n direct equity stake of 25% in Independen­t Media and R763-million in shareholde­r loans to the company, and R346-million of converted debt.

PIC executives appeared before the committee on Tuesday for a briefing on the corporatio­n’s 2015-16 financial report.

The Isibaya Fund was establishe­d in 1999 to invest in projects that would have a positive social effect and that supported long-term economic, social and environmen­tal growth. These projects were also expected to deliver positive returns for PIC’s clients, the largest of which are the Government Employees Pension Fund and Unemployme­nt Insurance Fund.

MPs were informed that R23.5-billion of the Isibaya portfolio was invested in developmen­tal investment­s and R21billion in private equity, of which R14.9-billion was in domestic equity and R6.2-billion non-domestic.

Of the R44.6-billion, R37.4-billion was invested in SA, with 29% of this invested in manufactur­ing, 16% in renewable energy, 9% in housing, 6.5% in agricultur­e, 6% in property-related sectors and the remaining 33% in various other sectors of the economy.

The $438-million (R6-billion) worth of investment in the rest of Africa was invested in financial services (33%), manufactur­ing (32%), telecommun­ications (24%) and the remainder in various other sectors.

Investment in the health sector in SA (R2-billion) was through the Razorite Healthcare Fund and black-owned hospital group Busamed. Investment in the education sector (R1.35-billion) was in Eduloan and the Schools and Education Investment Impact Fund.

At year-end R6.7-billion had been invested in the affordable housing sector and R9.7-billion had been committed to renewable energy projects, of which R6.8-billion had been invested in projects generating 2 318MW of electricit­y.

The Isibaya Fund had invested R3-billion in agricultur­e including direct investment­s in Afgri, Daybreak Farms, Just Veggies and Southern Farms, and indirect investment­s to Futuregrow­th Agri Fund.

Investment­s in small- and medium-sized enterprise­s (SMMEs) amounted to R785millio­n and included investment­s in financial intermedia­ries Business Partners, Mazwe Financial Services and Venda Building Society.

A total of 299 SMMEs had been facilitate­d and 60 169 community groups had been funded to start small businesses to sustain their families.

At the end of the financial year, the PIC’s total assets under management was R1.9-trillion. The informatio­n provided by the PIC showed the fund had produced an internal rate of return of 9.68%, higher than the benchmark 8.21%.

Maynier welcomed the disclosure of the “secret investment­s”, which included the name, type, value, internal rate of return and the names of all directors of all 250 investment­s as on March 31 2016. — BDLive

 ?? Picture: HETTY ZANTMAN ?? SUPPORTED: Independen­t Media owner Iqbal Surve
Picture: HETTY ZANTMAN SUPPORTED: Independen­t Media owner Iqbal Surve
 ??  ??

Newspapers in English

Newspapers from South Africa