Nhlanhla Nene promises details soon on PIC inquiry
This follows a number of claims made concerning mismanagement of the PIC’s funds, as well as accusations of impropriety against CEO Daniel Matjila
Finance minister Nhlanhla Nene says details surrounding the commission that will examine governance issues at the Public Investment Corporation (PIC) will be announced shortly.
"The terms of reference have been drafted, everything is now in place and the matter is now between the presidency and department of justice," Nene said, speaking at the inaugural Government Employees Pension Fund (GEPF) thought leadership conference, in Johannesburg on Monday.
The PIC manages nearly R2-trillion on behalf of its largest client, the GEPF. The GEPF, in turn, administers a defined benefit fund on behalf of all government employees, which means that any shortfall is covered by taxpayers.
The PIC has been the subject of heightened scrutiny following a number of allegations made concerning mismanagement of its funds, as well as accusations of impropriety against its CEO, Daniel Matjila. This prompted President Cyril Ramaphosa to appoint a commission of inquiry into the PIC’s governance and operating model in August.
"The commission’s terms of reference will include a review of the PIC’s governance and operating model, possible changes to the PIC’s founding legislation, its memorandum of incorporation and investment decision-making framework," the Treasury said in a media release accompanying the announcement.
Nene also instructed the board of the PIC to commission a proper forensic investigation into allegations made against certain PIC executives. This has not yet been completed.