PIC must disclose details of R70bn worth of investments in its “unlisted investment portfolio” in SA

One of the first tests of the new Minister of Finance, Tito Mboweni, is whether he will support the disclosure of detailed information about R70 billion worth of investments made by the Public Investment Corporation in its “unlisted investment portfolio” in 2017/18.

The Public Investment Corporation has disclosed detailed information about investments in its “unlisted investment portfolio” for the past two years before the Medium-Term Budget Policy Statement has been presented in Parliament.

However, this year:

  • no disclosure of detailed information has been made by the Public Investment Corporation about investments in its “unlisted investment portfolio” during 2017/18;
  • no provision has been made for hearings on the Public Investment Corporation’s 2017/18 annual report and annual financial statements by the finance committee in Parliament; and
  • there seems to have been an “about turn” when it comes to greater transparency at the Public Investment Corporation.

The fact is that National Treasury is now opposing provisions that would promote greater transparency that are contained in my Private Members Bill, entitled the Public Investment Corporation Amendment Bill [B1-2018], which is before the finance committee in Parliament.

We have to ensure that detailed information about investments, especially investments in the “unlisted investment portfolio”, is disclosed, because it serves as a major disincentive to “rent-seekers” with political influence who want to raid the Public Investment Corporation.

I will, therefore, write to Dr Dan Matjila, Chief Executive Officer of the Public Investment Corporation, requesting him to disclose detailed information about the R70 billion worth of investments made by the Public Investment Corporation in its “unlisted investment portfolio” in 2017/18.

And I have already written to Yunus Carrim, Chairperson of the Standing Committee on Finance, requesting him to schedule a hearing with the Public Investment Corporation during the fourth term of Parliament.

We will not back down and will continue to fight for more transparency so that the Public Investment Corporation does not become a “piggy bank” for the governing party in South Africa.

DA to request SCOPA to probe the meltdown at the PIC

The Public Investment Corporation (PIC), which is responsible for investing more than R1.9 trillion, on behalf of a number of clients, most importantly the Government Employees Pension Fund, is in meltdown.

There is hardly a day that goes by without some new terrifying scandal surfacing at the PIC.

These include scandals surrounding:

  • allegations of irregular payments made by the Chief Executive Officer, Dr Dan Matjila, which now appear not to have been investigated thoroughly, following the leaking of an “internal audit” report [see here]; and
  • questionable investments, or potential investments, in inter alia Ayo Technology Solutions Limited, Sagarmatha Technologies Limited, Steinhoff International Holdings N.V. and VBS Mutual Bank.

I have, on several occasions in the past [see here and here], requested the Chairperson of the Standing Committee on Finance, Yunus Carrim, to schedule a hearing on the meltdown at the PIC.

My last request on 29 April 2018 suggested that in view of the number, and complexity of the issues, that the special hearing be scheduled for a full-day in Parliament

However, my requests have been rejected and the finance committee has effectively turned a blind eye to the meltdown at the PIC.

I will, therefore, as a last resort write to the Chairperson of the Standing Committee on Public Accounts, Themba Godi, requesting him to schedule a hearing on the meltdown at the PIC.

Deputy-Minister Sifiso Buthelezi needs to clarify exactly what is going on at the PIC

The Deputy-Minister of Finance, Sifiso Buthelezi, suggests there is “no truth” to the claim that there is an attempt to remove Dr Dan Matjila, the Chief Executive Officer of the Public Investment Corporation (PIC), at a special board meeting on Friday 15 September 2017.
However, reports  claim that:
• the Deputy Chairperson of the PIC, Xolani Mkwanazi, has written to the Dr Dan Matjila requesting him to respond to allegations concerning the funding of a project linked to a partner at a special board meeting tomorrow; and
• that the allegations are an attempt to remove Dr Dan Matjila from his position in order to crowbar a person, such as Brian Molefe, into the top job at the PIC.
The PIC’s board has a duty to deal with bona fide allegations of corruption but these allegations appear to amount to a “political hit”, not dissimilar to previous “political hits”, contained in the “Project Spider Web” dossier, which appears to have been designed to advance the interests of President Jacob Zuma, and his clients, the Guptas.
The Deputy Minister of Finance, Sifiso Buthelezi, who is also the Chairperson of the PIC, needs to act to protect the integrity of the institution, and to protect the savings of pensioners, by making a public statement clarifying exactly what is going on at the PIC.
We cannot sit back and allow President Jacob Zuma, and his number one clients, the Guptas, to get their hands on the R1.8 trillion under the management of the PIC.