ALLAN GREENBLO: Public Servants Association wants answers on PIC loan to Eskom
Trade union applies to court to get clarity on R5bn to Eskom, plus how PIC directors are appointed
Yet another confrontation has befallen the beleaguered Public Investment Corp (PIC). This time it’s to explain the inner workings of its relationship with the Government Employees Pension Fund (GEPF), the PIC’s major client, specifically over the grant of a R5bn bridging loan from the PIC to Eskom. The purpose of the loan was to allow Eskom time, through a short-term operational liquidity crunch, to arrange longer-term borrowings from financial institutions. Fundamentally at issue was whether: The loan, granted in February 2018, was guaranteed by the government. If it wasn’t, which is denied, there are at least explanations of how the government considers the guarantees take effect. The GEPF was consulted. The PIC, represented by then CEO Dan Matjila, says it was consulted. The GEPF, represented by principal executive officer Abel Sithole, says it wasn’t. The GEPF board ever discussed the loan either prior or subsequent to it having been granted. Because the investment mandate of th...
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