Deals for pals at the PIC a worry - Tim Harris

Deals for pals at the PIC a worry - Tim Harris
Tim Harris
February 2014

DA MP calls on Pravin Gordhan to urgently reassure govt pensioners that their money is not being squandered

Deals for pals: DA calls on Finance Minister to reassure pensioners with directive to PIC

The Minister of Finance, Pravin Gordhan, must urgently reassure government pensioners that the Public Investment Corporation (PIC) is not allowing politics to influence its investment decisions (see report).

I will be writing to the Minister of Finance to ask him to issue a directive to the board of the PIC to act only in the interests of government pensioners, and not in the interests of ANC-connected individuals.

This action by the Minister is allowed in terms of Section 6(4) of the PIC Act and will reassure pensioners that the Minister will not permit the board - which he appoints - to play fast and loose with government pensions.

Weekend press reveals that the PIC is considering purchasing a controversial and potentially over-priced share of mining company Kalagadi Manganese from ANC-connected bigwig Daphne Mashile-Nkosi for R3.9 billion.

This comes on the back of a R500 million investment into the Independent Group to help Dr Iqbal Survé take control of the media company, and a R19 billion cash injection into the South African National Roads Agency.

These three deals raise serious questions about whether the PIC is making objective investment decisions in the interest of the 360 000 government pensioners and 1.2 million active members of the Government Employees Pension Fund, or is risking their pensions on deals for the ANC's pals.

The Finance Minister must issue this directive to the board, and then hold them accountable for keeping politics out of their investment decisions.

Statement issued by Tim Harris, DA Shadow Minister of Finance, February 10 2014