SAI20 South Africa
The Congress of South African Trade Unions (Cosatu) has flagged possible governance and political interference at the Public Investment Corporation (PIC) following the resignation of board chairperson David Masondo.
Masondo stepped down on Thursday, saying he hoped his resignation would help restore stability at South Africa’s largest asset manager after months of governance challenges.
His departure follows the precautionary suspension of PIC CEO Patrick Dlamini and the resignation of six non-executive directors.
Cosatu’s parliamentary coordinator Matthew Parks said the federation is concerned about the instability at the PIC, which manages billions of rands on behalf of workers through the Government Employees Pension Fund, the Unemployment Insurance Fund and the Compensation for Occupational Injuries and Diseases Fund.
Parks warned that the PIC has for years been vulnerable to political interference and corruption, placing the retirement savings of millions of South Africans at risk.
However, he acknowledged that the outgoing board had made meaningful progress in addressing longstanding governance failures.
“We do want to appreciate that over the past few years, under the outgoing Board, there was actually significant progress on many fronts. Previously, the PIC boards were deeply embedded in issue corruption. The outgoing board actually done some positive work in beginning to tackle that.”
The South African Federation of Trade Unions (SAFTU) echoed Cosatu’s concerns, warning that the current governance crisis threatens confidence in one of the country’s most important financial institutions, which manages more than R3 trillion in assets on behalf of public sector workers.
SAFTU spokesperson Newton Masuku said all documents, emails, electronic records, board minutes and other evidence linked to the ongoing investigations should be preserved.
He stressed that investigations must continue without political or administrative interference, despite changes to the PIC’s leadership.
The federation is also calling for an independent investigation led by individuals with no actual or perceived conflicts of interest, as well as full protection for whistleblowers who come forward in good faith.
SAFTU has further urged Parliament’s Standing Committee on Finance to hold urgent public hearings involving Finance Minister Enoch Godongwana, former and current PIC board members, Patrick Dlamini, the Government Employees Pension Fund, the Financial Sector Conduct Authority and other relevant stakeholders.
Meanwhile, Parks said the appointment of a new PIC board should be prioritised, adding that members must be selected based on integrity and competence rather than political considerations.
“We think that is very unhealthy. So we do hope that when the new PIC board is appointed, it’s led by persons of integrity and capacity. We expect the government to respect that the PIC Act provides for three worker representatives chosen by workers at the Public Service Bargaining Council to represent them. Not chosen by politicians,” said Parks.
Cosatu has also called for investigations into the outgoing board, including the controversial Acapulco investment already referred to the Special Investigating Unit (SIU), to be expedited.
Parks said the trade union federation wants the president to mandate that the SIU, the Hawks, and the Auditor-General conduct a broader forensic investigation into all PIC investments, arguing that any possible corruption may extend beyond a single transaction.
Source: https://www.jacarandafm.com/news/news/unions-warn-political-interference-is-undermining-pic/