Inquiry into PIC conduct begins
Ex-judge probes impropriety claims
The commission of inquiry into allegations of impropriety at the Public Investment Corporation (PIC) began yesterday, with executives providing background on how the stateowned asset manager operates. The PIC is wholly owned by the government and is the largest investor on the continent. It manages government pensions and other funds worth about R2-trillion. Over the years the PIC’s unlisted portfolio has become an important source of funding for black entrepreneurs, fuelling allegations that dealmaking is influenced by political connections and considerations. There has also been wide speculation that dealmaking has been used to channel funds to the ANC. The inquiry is led by retired Supreme Court of Appeal judge Lex Mpati. Mpati is being assisted by former Reserve Bank governor Gill Marcus and investment banker Emmanuel Lediga.
Mpati said in his opening remarks that people with knowledge of any untoward dealings involving the PIC could still approach the commission, and if needs be, provide evidence with their identities protected.
The first to testify was Wilna
Louw, the PIC’s acting company secretary. Louw provided an overview of the applicable legislation governing the PIC’s operation and the manner in which corporate governance principles were applied in the organisation, including in the composition and functioning of the board.
Louw said it was not compulsory, according to the PIC Act, for the deputy minister of finance to be appointed chairperson of the PIC, as has been common practice in the past. Among other things, the commission has been tasked with whether the composition of the board is the most effective and efficient model for the purposes of running the PIC. Roy Rajdhar, head of impact investment, provided a detailed description of the investment process for his division which focuses on private companies. Impact investing aims to extend capital for the specific purpose of assisting companies to expand or grow. The commission continues today.