South Africa pledges to “ensure transparency” at Public Investment Corporation

South African finance minister Malusi Gigaba said he has asked for the information because of concern “about the politicising of the PIC”, which manages assets of more than ZAR1.85 trillion ($137 billion) which are mainly government employees’ pension funds.

Gigaba has also asked the PIC management team to “conduct a forensic investigation into any concerns of irregularities at the asset manager”, South Africa’s government news agency said.

“We need to assure pension holders that those with political or economic power will not be allowed to unduly influence the PIC,” Gigaba was quoted as saying. He said he expected the list he has asked for “to detail the directors and shareholders of those companies” to “ensure that there is transparency, and further build confidence in the institution”.

According to the news agency, Gigaba said “it is in the best interest of pension holders and investors in the PIC for government to ensure that the asset manager does not function in an opaque manner”. “The PIC does not belong to powerful people… its interest must be aligned to what is best for pension holders,” the minister added.

In a related move, Gigaba said he “noted” calls by labour unions for them to have a representative on the PIC board.

Gigaba’s announcement comes after the PIC dismissed media allegations (2-page / 272KB PDF) about the running of the organisation, its chief executive officer Dr Daniel Matjila and related “untruthful allegations” about Gigaba himself. “We find the attacks on the PIC and directors regrettable and unnecessary,” PIC’s board said.

The PIC is a registered financial services provider that is wholly owned by the South African government, with the finance minister as shareholder representative.