The National Treasury says the commission of inquiry that President Cyril Ramaphosa has appointed to investigate state-owned fund manager Public investment Corporation (PIC) will look at matters related to governance failures.
The names of the chairperson of the commission and the supporting team, as well as the detailed terms of reference of the commission, will be announced in due course.
The PIC invests on behalf of the large Government Employee Pension Fund and four smaller state-run funds, including the Unemployment Insurance Fund.
It oversees roughly R2 trillion’s worth of assets.
The PIC has been embroiled in a corporate governance scandal.
Its CEO Dan Matjila is accused of abusing his position to financially benefit his alleged girlfriend which has led to, United Democratic Movement (UDM) leader, Bantu Holomisa calling for Matjila’s suspension pending a forensic investigation.
Portfolio manager Michael Treherne, says the PIC’s governance issues may have a negative impact on new investments.
He says it will bring into question whether the investment corporation is investing high yielding projects.
Treherne has added that Treasury’s inquiry into the affairs of the PIC will ensure that its management is sustainable.
“I think the existing funds you wouldn’t have to worry about and government wants to make sure that is done right. Part of the PIC’s money is UIF for example. So you want to make sure that unemployed people who are recieving UIF continue to receive their money. So you want solid leadership, at the moment you’ve got a split in the board due to allegations,none that have been proven yet. You’ve got people more focused on protecting themselves and trying to stave off allegations than running the organisation,” says Treherne.
Treherne says government pensioners will not suffer major losses due to this scandal. This as the investment corporation has diversified its investments.
