UIF behind PIC inquiry

Wednesday, January 23, 2019

The Unemployment Insurance Fund (UIF) says it is closely monitoring and supports the Commission of Inquiry currently underway to investigate allegations of impropriety at the Public Investment Corporation (PIC).

The Judicial Commission of Inquiry, which started on Monday, is investigating allegations of impropriety following reports of poor governance and precarious investment processes at the PIC, which is the only investment management company in South Africa that focuses exclusively on the public sector.

In a statement on Wednesday, the UIF said it has started engaging the PIC to seek assurance that the fund’s investment portfolio is safe and has not been negatively impacted.

The UIF is one of the clients whose partial assets are under the management of the PIC.

The fund said it noted with concern the suspension of two officials at the PIC for allegedly flouting governance and approval processes in the R4.3 billion investment into Ayo Technologies.

One of the suspended employees, Fidelis Madavo, had testified at the inquiry a few hours after being suspended.

“The fund respects that the suspensions are an internal matter between employer and employee. However, the UIF has started engaging the PIC to seek assurance that the fund’s investment portfolio is safe and has not been negatively impacted by the debacle.”

The UIF added that it is closely monitoring and supports the commission.

The commission’s terms of reference include a review of the PIC’s governance and operating model, possible changes to the PIC’s founding legislation and its Memorandum of Incorporation and investment decision-making framework.

According to its terms of reference, the commission is required to provide the President with an interim report by February and submit a final report and recommendations by April 2019. - SAnews.gov.za

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