PSA warns about GEPF withdrawal from PIC

The Public Servants Association (PSA), representing more than 230 000 members in the Public Service, is demanding increase in greater control by workers over investments made by the Public Investment Corporation (PIC) of public servants’ pension funds.

“Despite general satisfaction with investments made on behalf of the Government Employees Pension Fund (GEPF), the PSA is becoming increasingly uneasy about persistent rumours related to PIC ‘capture’ and risk-ridden investments”, said PSA General Manager, Ivan Fredericks.

The PSA is calling for tighter controls to prevent the PIC form investing GEPF funding in unlisted companies where sufficient checks and balances are not in place. The PSA is furthermore seeking for a lowering of the investment threshold to further limit risks.

The PSA further questioned why the Minister of Finance has not appointed a single representative from the GEPF, as the majority investor, to the PIC Board of Directors.

“In the interest of all employees whose pensions are invested via PIC, the PSA is calling on the Minister to ensure that the GEPF is strongly represented on the PIC Board. The PSA is further insisting labour positions on the Boards of all companies where GEPF funds are invested by the PIC. Failure to adhere to these calls to ensure greater security, could ultimately result in the PSA insisting on GEPF appointing a new Fund manager and dropping the PIC as an investment vehicle,” said Mr Fredericks.

Statement issued by PSA General Manager, Ivan Fredericks, 29 September 2017