The Congress of South African Trade Unions (COSATU) notes the suspension of the Public Investment Corporation (PIC)’s Chief Executive Officer, Mr. Patrick Dlamini. We appreciate that this is not a finding of guilt but rather to allow investigations into sensitive matters of governance and financial conduct to take place in an appropriate manner. Whilst we can never welcome allegations of corruption, we appreciate the PIC acting to address matters of great concern to millions of workers and pensioners. We would not want a return to the dark days of state capture where such serious matters would have been swept under the carpet.

The Federation is deeply concerned by serious allegations of misconduct, possibly criminal, surrounding some investment(s) at the PIC. It is sacrosanct that all parties appreciate that the PIC’s funds are workers’ hard-earned pension, unemployment and workplace injuries and diseases insurance funds. They are not the private property of any PIC official nor the slush fund for politicians, tenderpreneurs or their families.

We view the allegations and counter allegations in a very serious light. It is critical that the PIC Board’s be provided the necessary space to investigate these allegations and where any persons are found wanting, to hold the accused accountable to the full might of the law, and to enlist the assistance of the relevant law enforcement authorities as needed.

For far too long the PIC was treated like a private piggy bank by many dodgy elements in the state, political and business circles, at the expense of the ordinary workers and pensioners to whom these monies belong.

We have been encouraged, by the positive strides that have been made over the past few years at the PIC to clean up the rot and introduce a sense of transparency and accountability.  Many of the Judge Lex Mpati Commission of Enquiry’s recommendations have been actioned.  Some, including the recent amendments to the PIC Act, need further work to ensure their full implementation.  Nonetheless there has been substantial progress from the days when a former CEO of the PIC had a blank cheque to sign unlisted and listed investments of up to R3 billion and R10 billion respectively without seeking board approval!

The PIC has done very well to grow its asset base from R1.8 trillion at the peak of COVID-19 to over R3.5 trillion today. It is critical that these funds which belong to workers, be used at all times to enable pensioners to retire in comfort, to provide relief to workers who lose their jobs, go on maternity or parental leave, or are afflicted by a workplace injury, disease or death. 

Given the weak state of South Africa’s economy and our dangerously high unemployment rate of 43.7%, it is equally important that these funds be invested in a manner that stimulates South Africa’s inclusive economic and industrial growth, creates decent jobs, invests in critical economic infrastructure, and helps create a better life for the working class. The days of dubious investments and unaccountability must end. 

COSATU will be seeking an urgent engagement with the PIC Board on these pressing matters for workers. The Federation will remain vigilant against those who seek to undermine efforts to clean up the PIC. We urge all parties to allow space for the Board to exercise its fiduciary obligations in full and without fear or favour.

Issued by COSATU

 Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za