LETTER: PIC’s vicious money cycle
Apparently we, the members and pensioners, should lend money back to the Public Investment Corporation
“Ready solution to SA’s debt crisis is right under our nose — the PIC”, states your headline of November 2.
Dr Dick Forslund has an impressive presence on the internet, but dummies such as I must wonder how much they know about the Public Investment Corporation (PIC) down in Sheppie. Most of the money it is responsible for is the property of the employees and pensioners of the Government Employees Pension Fund (GEPF).
Every cent it invests comes indirectly from the government, but it is earned, and now apparently we, the members and pensioners, should lend the money back to that profligate bunch? What a wonderful windfall for said government. It can dish out salaries and in return receive a proportion of that money back as a loan on top of the income tax it levies.
The PIC is already skating on thin ice where some investments are concerned. There would be a revolt if employees saw their pension contributions going back to the employer, particularly if those funds went to the worst-performing spheres of government, as Forslund suggests.