PARASTATAL SECTOR
ANTHONY BUTLER: Pensions for patronage close to policy
"Throwing pensioners’ money at unreformed parastatals might buy crooked politicians some time, but it is an appalling ethical breach."
There has been widespread condemnation of a reported plot to hijack the Public Investment Corporation (PIC), with the apparent aim of bailing out ailing parastatals and the bloated parasites feeding off them. It would be a mistake to believe that this is a "state capture" project that involves a small number of corrupt politicians and business people. The seizure of the PIC, and the tapping of the Government Employees’ Pension Fund (GEPF) that this would enable, is close to becoming official policy of the governing ANC. The idea enjoys widespread support in the movement’s leadership, on the left of the tripartite alliance, in the ANC Youth League, and among black management professionals, especially in the financial services sector. Many on the left of the alliance have long argued that pension funds — public and private — should be diverted to "developmental purposes". Numerous black investment professionals believe that emerging asset managers should control a significant proporti...
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.