Finance minister Enoch Godongwana has commissioned an investigation into controversial investments in the unlisted portfolio of the Public Investment Corporation (PIC) that he says are valued at about R170bn.
The report of the investigation is expected in the next few months and Godongwana said he would decide what immediate action to take on the basis of the report.
The inquiry will also look at the PIC’s involvement in poultry company Daybreak Foods, which is in business rescue. The asset manager took over the company after it defaulted on its loan. It will also consider the report of the Mpati commission of inquiry into the PIC, which has total assets under management of more than R3-trillion.
Godongwana was answering questions in in the National Assembly on Wednesday. He was responding to a question from DA MP Andrew Bateman who wanted to know what concrete steps the minister would take to ensure that negligent and corrupt directors at the PIC, Daybreak Foods and other PIC investment companies were held to account. Bateman noted that the Mpati commission had probed allegations of impropriety at the PIC.
Godongwana said most of the PIC executives involved in the Daybreak Foods debacle had left the asset manager. He said there had been 14 reports into the company and four forensic audits. He said he was committed to holding those responsible to account.
The minister met the Government Employees Pension Fund and PIC this week to discuss the situation and the course of action he should take. He noted that the intention behind investments in unlisted companies tended to be more problematic than listed ones and would be examined.
Communications & digital technologies minister Solly Malatsi announced that he would be seeking a public-private partnership for the SA Post Office (Sapo) as recapitalisation by the fiscus was unlikely. Such a partnership, he said, would ensure much-needed investment in Sapo’s infrastructure.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.