The Public Service Association (PSA) has threatened to pull out of the Public Investment Corporation (PIC),raising concern over allegations that the pension funds handled by the PIC may be used to bail out ailing parastatals.
The PIC oversees the biggest fund in Africa‚ managing about R1.9-trillion in assets mainly belonging to the Government Employees Pension Fund.
PIC chief executive officer Dan Matjila has since rejected reports that government has asked for R100 billion to bail out state-owned entities.
General Manager of the PSA, Ivan Fredericks says however, the rumors are not the only thing they are worried about.
We received the PIC's annual report. There is a lot of investment made in companies which we feel is adding no value to the government employees pension fund. We are talking about companies that are parastatals, the risk they pose to our fiscal outlook...— Ivan Fredericks, General Manager of the PSA
The PSA has appealed to Finance Minister Malusi Gigaba to appoint a worker representative on the PIC board in order to understand how the funds are being invested.
We are at that stage where we trust no one.— Ivan Fredericks, General Manager of the PSA
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