PIC: PSA demands action by Minister of Finance
11 April 2019
The Public Servants Association (PSA) has requested the Minister of Finance to restore stability to the management of funds under the control of the Public Investment Corporation (PIC) by urgently dealing with the appointment of Directors to replace those who in February 2019 expressed a clear wish to resign.
The PSA’s attorneys, on 10 April 2019, addressed a letter to the Minister of Finance, Mr Tito Mboweni, pointing out that in a media release issued on 1 February 2019, the PIC Board stated that it had requested the Minister to release the Board. The request was made by nine non-executive directors who indicated that their decision was based on various recent events that had destabilised the PIC as well as a concerted effort to discredit the board to the extent that there could not be any credibility to the work that is executed in fulfilling its fiduciary responsibilities.
In a subsequent media release by the PIC on 5 February 2019, it was confirmed that its Board of Directors was still in place and that the non-executive directors were committed to remain as directors until the Minister had appointed a new Board.
“The wish of the non-executive members of the PIC Board to resign, and the delay of almost three months in appointing replacements have created uncertainty and an impasse to the severe prejudice of the PIC, the Government Employees Pension Fund (GEPF) as its largest depositor, GEPF members, and PSA members as members of the GEPF. The controversy surrounding the PIC and the conduct of its Board is not only acknowledged by members of the Board but is a matter of public record and the subject of the judicial commission of enquiry,” said PSA General Manager, Ivan Fredericks.