The Congress of South African Trade Unions (COSATU) notes of the resignation of the Public Investment Corporation (PIC)’s Board, including the Chairperson, Deputy Minister for Finance, Dr. David Masondo, as well as labour’s representatives. We appreciate their diligent efforts over the past two terms to ensure that workers and pensioners’ hard-earned monies are safe at all times.

It is important for all parties to understand that the monies invested by the PIC, namely the Government Employees’ Pension, Unemployment Insurance and Compensation of Occupational Injuries and Diseases Funds; belong to workers and pensioners, not PIC officials, politicians, tenderpreneurs or their families. We commend the PIC’s performance that saw these assets doubling over the past six years from R1.8 trillion to R3.6 trillion, far outstripping other funds and entities.

We remain deeply concerned, notwithstanding the performance of the outgoing Board, that serious instances of corruption, wastage and state capture remain entrenched within the PIC. We have been extremely disappointed by whistleblower reports alleging continued interference by politicians in PIC appointments and investments. 

COSATU welcomed the referral by the outgoing Board of the Acapulco investment into Lanseria Airport to the Special Investigation Unit (SIU) for further investigation.  It is critical that this and other investigations into governance and corruption are not blocked or swept under the carpet by the Board’s resignation. 

The Federation urges the President, H.E. Cyril Ramaphosa, to task the SIU with the support of the Auditor-General and the Hawks to investigate all PIC investments, listed and unlisted, and to hold any persons, no matter who they may be, fully accountable under the law for any instances of corruption.

It is critical that Cabinet move with speed to appoint a new PIC Board.  It must consist of persons of integrity and capacity to provide the necessary stability and leadership to the PIC. We expect Cabinet to comply with the PIC Act’s requirements that three representatives to the PIC Board be selected by workers through the Public Service Coordinating Bargaining Council. These are key to assuring workers and pensioners that their hard-earned monies are safe.

COSATU insists and will ensure that any proposed amendments to the PIC Act, retain and protect the progressive gains workers secured in the 2019 PIC Amendment Act, namely worker selected representatives and clear criteria for Board appointments, checks and balances upon the executive authority, progressive investment mandates and the required public disclosure of all listed and unlisted investments.

The Federation will continue to engage with the Presidency, Treasury and Parliament to ensure that workers and pensioners’ interests are respected at all times and that all instances of state capture and corruption at the PIC are dealt with.

Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za