While the government seems to have plans for the PIC to bail out Eskom, Public Investment Corporation CEO Dan Matjila says its current exposure to Eskom is already unsustainable. He says the PIC, which controls R1.9-trillion of mostly government employees’ pension money, is overexposed to Eskom bonds. Finance minister Malusi Gigaba said recently the government had not ruled out using the PIC to recapitalise SOEs including Eskom. Matjila says the PIC intends doing just the opposite. "If things don’t change for the better we will not increase our exposure and we will allow natural maturity to happen to reduce that exposure, because it is not sustainable." Matjila concedes that, given the size of its exposure, the PIC should have done more to ensure proper governance at the power utility. "We’re putting together a report on Eskom so we can understand what are the issues that need sorting out in order for us to roll any bonds that are going to mature." He concedes that this is something...
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