PIC still has problems after failing to learn lessons
There is truth in the opinion piece published in this newspaper by Public Investment Corporation chair David Masondo stating that the PIC must take on board lessons (“PIC is taking on board lessons on how to fund BEE transactions”, June 23). The problem is that it’s mostly water, not lessons, that seems to be flooding the PIC ship.
A core defence of the PIC raised by the deputy finance minister is that many of its scandals come from the so-called state capture era. That the water is under the bridge rather than swamping the ship. This argument suffers from three problems.
First, there is evidence suggesting the PIC’s bad investment culture is alive and well. Last year, the PIC “invested” R101m in Enable Capital, a company that turned out to be a scam. Nor is this a unique failure. The PIC’s own data shows that 14 of 35 unlisted investments made since 2022 have had a negative internal rate of return. Lessons learnt indeed.
Second, the PIC is struggling to resolve its historic investments. The auditor-general flagged a staff shortfall in its Turnaround and Value Add unit, which is likely to be contributing to this problem. Put differently, the ship has too few people on board who know how to operate the water pumps.
Third, PIC officials are often accused of wrongdoing at companies it is invested in. Daybreak Foods, a business entirely owned by the PIC, has faced scandal upon scandal. In 2022, the Sunday Times reported that the PIC’s company secretary, Bongani Mathebula, apparently broke rules to place an associate on the Daybreak Board as chair.
This is not an isolated incident. Former CIO Kabelo Rikhotso recently left the PIC by mutual agreement after being placed on precautionary suspension. Former COO Vuyani Hako was also suspended and then left the PIC in 2025 under a cloud with a R10.8m golden handshake. Another executive, Thabiso Moshikara, last we heard, remains suspended after bribery allegations.
Masondo describes a healthy tension existing between the board and management. With respect, describing recent social media smear campaigns targeting Masondo on one hand and CEO Patrick Dlamini on the other as “healthy tension” is like describing the Titanic as having a small iceberg problem.
Despite Masondo’s assurances, matters are clearly not okay at the PIC. Its largest client, the Government Employees Pension Fund, has placed a moratorium on the PIC making unlisted property investments with pensioners’ money. South African pensioners are right to be deeply concerned when those holding the keys to trillions in savings stumble from scandal to scandal.
Mark Burke
DA spokesperson on finance
Global migration needs a balanced approach
The protest demonstrations held in various regions of South Africa in recent days regarding immigration once again demonstrate that the issue of migration is not only the concern of a single country but also one of the complex social, economic and humanitarian challenges facing the entire world.
For many years, South Africa has been regarded as one of the more economically developed countries in Africa. For this reason, thousands of people from neighbouring and other African countries travel there in the hope of finding a better life, greater security and employment opportunities.
However, the high level of unemployment, the rising cost of living, the burden on the social welfare system and problems related to housing and employment have created concern among certain segments of society. Some people consider immigration to be one of the causes of these difficulties, while others argue that the main causes are economic and structural problems. For this reason, immigration has become one of the most sensitive subjects of public debate.
Nevertheless, every state has the sovereign right to protect its borders and regulate its migration policy in accordance with its legislation. At the same time, protecting the dignity, security and fundamental rights of every human being is one of the basic principles of international law adopted by the UN.
Differences of opinion regarding immigration should not be resolved through violence, hatred, or confrontation, but through dialogue and the fundamental human rights of migrants.
We hold the peoples of Africa in deep respect for their rich history, culture and the great struggles they have undertaken in the pursuit of freedom. The people of South Africa have also set an example for the entire world through their long struggle for justice, equality and human dignity. Preserving these values for future generations is of great importance.
Today, regardless of where they live in the world, one of the most important responsibilities of every individual is to contribute to the preservation of peace, mutual respect and the rule of law. Societies can build a stable and secure future only through mutual understanding, humanism and commitment to the principles of international law.
Peace is not only the common treasure of states but also of all humanity. Protecting it is not only the moral and conscientious duty of every individual but also a sacred responsibility before future generations.
Qavami Sadigbeyli
Republic of Azerbaijan
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