South Africa: A Political Hand Might (Again) Oversee the PIC’s Governance Processes, Warns Board Chair Reuel Khoza


The Public Investment Corporation’s board term ends in October. The appointment of a new board chair might have to come from the finance ministry, raising fears that the governance and management of the state-owned entity might be politicised again.

The Public Investment Corporation’s (PIC’s) board chair, Dr Reuel Khoza, has warned that efforts to depoliticise the state-owned asset manager’s governance and management processes might be undermined by a piece of legislation that was recently signed into law by President Cyril Ramaphosa.

The PIC Amendment Act, which has been sitting on Ramaphosa’s desk since early 2019, was signed into law in February, introducing several measures to improve transparency and accountability in the management of South Africa’s largest pension fund.

The act will require the PIC, which manages about R2.3-trillion in government pension and social funds, to publish on its website all transactions/investments in the unlisted space, which previously it did not have to disclose.

The PIC’s unlisted investments created fertile ground for malfeasance and shady deals involving politically connected individuals, often at a significant loss to the PIC. The famous soured deals include the PIC’s more than R500-million investment into Sekunjalo Independent Media, which is linked to businessman Iqbal Survé, and…

ADVERTISEMENT



Source link : https://allafrica.com/stories/202110010836.html

Author : Daily Maverick

Publish date : 2021-10-01 15:22:42

share on: