Political chair will worsen risk for PIC, warns former director
Report calls for appointment of a nonpolitical deputy chair to balance competing interests
Having a politician chair the Public Investment Corporation (PIC) will “exacerbate” risk for the state-owned asset manager and will not improve its governance, one of the organisation's former directors said on Monday. “There is no legal or economic principle that supports that the chair of the PIC should be the deputy finance minister. By putting a political chair in place, it exacerbates the risk, without enhancing the returns or improving the governance of the institution,” Vuyo Jack, who served as a PIC nonexecutive director from December 2012 to November 2015, said at the inquiry into the organisation led by retired judge Lex Mpati.
The corporation has been embroiled in many controversies, including allegations of corruption. The inquiry heard previously that the practice of appointing the deputy finance minister as chair of the PIC was not mandated by legislation. The PIC, which manages more than R2-trillion on behalf of public bodies, most notably the Government Em...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.