SOEs a major exposure for the PIC
The asset manager is often called on by cash-strapped, overindebted and struggling SOEs to provide funding
The Public Investment Corporation (PIC) has a R183bn exposure to state-owned enterprises (SOEs), acting CEO Matshepo More revealed in a presentation to parliament’s standing committee on public accounts on Thursday night. The asset manager — the largest in Africa with total assets under management of more than R2-trillion — is often called on by cash-strapped, overindebted and struggling SOEs to provide funding. An example was the R5bn one-month loan granted to crisis-hit Eskom in February on the basis of a government guarantee. Of the R183bn invested in SOEs, R94bn is invested in Eskom. This is largely underpinned by government guarantees. The PIC’s executive head of listed investments, Fidelis Madavo, said that this investment had not been increased in recent times because of worries about governance. More highlighted the PIC’s development role, which had to be taken into account as well as risk-return considerations. The PIC appeared before the committee to discuss the documents ...
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