The Public Servants Association (PSA) stated that calls to dissolve the Public Investment Corporation (PIC) board are premature and could undermine good governance. The union believes the board should be allowed to complete its investigations without political interference following recent suspensions.
Speaking to VOC News, PSA spokesperson Claude Naicker explained that the PIC plays a critical role in managing public funds. He said the corporation invests primarily on behalf of the Government Employees Pension Fund (GEPF) and the Unemployment Insurance Fund (UIF), with a mandate to support economic growth, infrastructure development and job creation.
“In a nutshell, it invests on behalf of the Government Employees Pension Fund and also on behalf of the Unemployment Insurance Fund,” Naicker said.
Responding to calls for the board to be dissolved, Naicker argued that the focus should instead be on identifying and addressing governance failures.
“I think it’s a little bit premature to actually go down that route. We need to establish exactly what the problems are and deal with them,” he said.
Naicker pointed to the Mpati Commission, which investigated governance and investment failures at the PIC after several investments generated poor returns or significant losses. He said those findings should continue to guide reforms rather than prompting the immediate dissolution of the board.
He cited the failed Daybreak Foods investment as an example of the challenges facing the corporation. The poultry company entered financial distress, leading to job losses and the culling of livestock, raising fresh concerns about the management of public funds.
According to Naicker, poor due diligence on certain unlisted investments has affected returns and heightened concerns, as the GEPF manages the pension savings of around 1.3 million public servants.
He stressed that while governance concerns must be addressed, any action taken should follow proper processes to protect public confidence in one of South Africa’s most important investment institutions.
Listen to the full interview below:
VOC News
Photo: Pixabay
