DA bill on Public Investment Corporation handed to Baleka Mbete
The draft bill provides for the chairman of the all-important PIC to be appointed by the Cabinet
Parliament’s finance committee hoped to finalise a bill to amend the Public Investment Corporation (PIC) Act "reasonably soon", committee chairman Yunus Carrim said on Wednesday.
His comment came in response to a statement by DA finance spokesman David Maynier that he had submitted a private member’s bill — the Public Investment Corporation Amendment Draft Bill — to speaker of the National Assembly Baleka Mbete for introduction in the house.
The draft bill provides for the chairman of the all-important PIC, which manages about R1.9-trillion in assets on behalf of the Government Employees Pension Fund and other statutory funds, to be appointed by the Cabinet on advice from the National Assembly.
Carrim said the committee was going to propose many of the amendments contained in Maynier’s bill and had taken a resolution to this effect.
Maynier observes in his notes to the draft bill that the PIC is one of the cornerstones of the South African economy and its good governance is a priority. The draft bill is aimed at enhancing its governance, introducing checks and balances in PIC management structures and increasing transparency.
In terms of the bill, the chairman of the PIC — currently appointed by the minister of finance — would be appointed by the minister on the recommendation of the National Assembly. The 10 nonexecutive members of the board appointed by the minister must in terms of the bill include one representative of the Treasury, each major depositor of the PIC (such as the GEPF and the Compensation Fund) and a registered trade union that represents the majority of GEPF members.
To ensure transparency, all directives issued by the minister to the PIC will have to be tabled in the National Assembly and published on the PIC website.
The draft bill if enacted would also require the PIC to disclose all its investments yearly by way of a report.
"This requirement would contribute to transparency and investor confidence," says Maynier.
The bill would require the PIC to include in its annual report a list of all requests to the minister for the year involving significant transactions requiring ministerial approval.