The finance ministry was rapped over the knuckles by parliament’s finance committee on Wednesday for its no-show at an important meeting to discuss the implementation of the recommendations of a commission of inquiry into the Public Investment Corporation (PIC), Africa’s largest asset manager.
The PIC manages just under R2-trillion in assets on behalf of the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund (UIF) and the Compensation Fund.
Finance minister Tito Mboweni was caught up in a cabinet meeting and his deputy David Masondo was unavailable and, without a prior apology, they sent a Treasury official in their place.
This is the second time a committee meeting on the report of the inquiry into the PIC, led by retired judge Lex Mpati, has had to be postponed. A meeting in June was postponed because of Mboweni’s unavailability.
PIC chair Reuel Khoza, CEO Abel Sithole and PIC board members were present to report on the PIC’s implementation of the recommendations, which found lapses in governance at the PIC and made scathing findings against its former CEO Dan Matjila, who is challenging the findings in court. The report was released by President Cyril Ramaphosa in March.
Committee chair Joe Maswanganyi said it was unsatisfactory that the ministry was not present and unacceptable that a Treasury official had been sent in their place.
“I think the executive must take parliament very seriously,” Maswanganyi said. “The three arms of government — the executive, legislature and judiciary — have equal status and one does not carry more weight than another.”
The committee will try to convene another meeting later this week with Mboweni, the PIC and Mpati. Maswanganyi said Mboweni also has to explain why the PIC Amendment Bill has still not been signed by Ramaphosa more than a year after it was passed by parliament.
The bill, which was introduced by the finance committee, aims to strengthen accountability and transparency in the PIC and provides for union representation on its board. It also requires that annual reports on the PIC’s listed and unlisted investments be submitted to parliament.
EFF chief whip Floyd Shivambu insisted that Mpati himself appear before the committee to deal with the legislative recommendations of his report, which are within the purview of parliament.
The DA, EFF and Freedom Front Plus argued for the committee meeting to continue despite the absence of the finance ministry so it could engage with the PIC on the myriad of issues facing it, but they were overruled by ANC members.
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