Cosatu’s strong-arm tactics behind PIC bailout of Edcon
Decision was counter to the recommendations of investment professionals, say insiders
Cosatu signalled a “massive fight” with the ANC if the state-owned fund manager failed to rescue SA’s second-largest clothing retailer, Edcon Holdings.
A week after a senior labour union official sent an e-mail on February 22 to the country’s then deputy finance minister, the Public Investment Corporation (PIC) led a R2.7bn investment in Edcon, two people with direct knowledge of the situation said. The decision ran counter to the recommendations of PIC’s investment professionals, the people said.