Minister Gigaba requests PIC to provide beneficiary list

Friday, October 6, 2017

Finance Minister Malusi Gigaba has requested the Public Investment Corporation (PIC) to provide a list of all its beneficiaries and the investments it has made, which he intends to make public.

In a statement on Friday, the Minister expressed concern about the politicising of the PIC, which is one of the largest investment managers in Africa, managing assets of over R1.857 trillion, which are mainly government employees’ pension funds.

“While clarity has been given on the matter, the Minister thought it would be important to support his statement with bold action. The Minister has written a letter to the CEO and Board of the PIC, requesting them to provide a list of all its beneficiaries and the investments it has made, which he intends to make public,” said the Ministry of Finance.

The Finance Minister has also asked the PIC Chief Executive Officer and Board to conduct a forensic investigation into any concerns of irregularities at the asset manager.

“The Minister expects the list to detail the directors and shareholders of those companies. This will ensure that there is transparency, and further build confidence in the institution. The Minister has given the CEO and the Board two weeks to respond to this request.

“We need to assure pension holders that those with political or economic power will not be allowed to unduly influence the PIC,” said Minister Gigaba.

He said that it is in the best interest of pension holders and investors in the PIC for government to ensure that the asset manager does not function in an opaque manner. Minister Gigaba said the PIC does not belong to powerful people and that its interest must be aligned to what is best for pension holders.

Minister Gigaba has also noted calls by labour unions for a representative of labour on the PIC Board.

He is considering this request and will arrange a meeting with labour stakeholders to discuss this matter further.

As the Medium Term Budget Policy Statement (MTBPS) approaches, the Minister has appealed for a focus on the issues that matter, such as growing the economy and finding ways of ensuring inclusive growth.

Minister Gigaba will table the MTBPS in Parliament on 25 October. –

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