Dr David Masondo, Deputy Minister of Finance. The labour federation Cosatu says South Africa's R3.6 trillion public investment fund must remain protected through stronger governance, worker representation and continued investigations into alleged wrongdoing.
Image: Timothy Bernard / Independent Newspapers
The Congress of South African Trade Unions (Cosatu) has called on Cabinet to urgently appoint a new board for the Public Investment Corporation (PIC), warning that investigations into alleged corruption and governance failures must continue despite the resignation of the corporation's board.
The federation acknowledged the resignation of the PIC board, including chairperson and Deputy Finance Minister Dr David Masondo, as well as labour representatives, while commending their stewardship during a period in which the PIC's assets under management doubled.
According to Cosatu, the funds managed by the PIC belong to South African workers and pensioners and must remain protected from political interference and corruption.
"It is important for all parties to understand that the monies invested by the PIC, namely the Government Employees' Pension, Unemployment Insurance and Compensation of Occupational Injuries and Diseases Funds, belong to workers and pensioners, not PIC officials, politicians, tenderpreneurs or their families," the federation said.
Cosatu praised the outgoing board for overseeing strong investment growth.
"We commend the PIC's performance that saw these assets doubling over the past six years from R1.8 trillion to R3.6 trillion, far outstripping other funds and entities," it said.
Despite the strong financial performance, the federation warned that governance concerns remained unresolved.
"We remain deeply concerned, notwithstanding the performance of the outgoing Board, that serious instances of corruption, wastage and state capture remain entrenched within the PIC," Cosatu said.
The federation added that it had been "extremely disappointed by whistleblower reports alleging continued interference by politicians in PIC appointments and investments."
Cosatu also welcomed the outgoing board's decision to refer the Acapulco investment linked to Lanseria Airport to the Special Investigating Unit for further investigation.
"It is critical that this and other investigations into governance and corruption are not blocked or swept under the carpet by the Board's resignation," the federation said.
The labour federation urged President Cyril Ramaphosa to expand investigations into the PIC's investment portfolio.
"The Federation urges the President, Cyril Ramaphosa, to task the SIU with the support of the Auditor General and the Hawks to investigate all PIC investments, listed and unlisted, and to hold any persons, no matter who they may be, fully accountable under the law for any instances of corruption."
Cosatu said stability at the PIC was now essential and called on Cabinet to move swiftly in appointing a new board comprising individuals with the necessary expertise and integrity.
"It is critical that Cabinet move with speed to appoint a new PIC Board. It must consist of persons of integrity and capacity to provide the necessary stability and leadership to the PIC."
The federation also stressed that the appointment process must comply with the Public Investment Corporation Act by ensuring that three worker representatives are selected through the Public Service Coordinating Bargaining Council.
"We expect Cabinet to comply with the PIC Act's requirements that three representatives to the PIC Board be selected by workers through the Public Service Coordinating Bargaining Council. These are key to assuring workers and pensioners that their hard earned monies are safe."
Looking ahead, Cosatu said it would oppose any legislative changes that weakened protections introduced under the 2019 PIC Amendment Act.
"Cosatu insists and will ensure that any proposed amendments to the PIC Act retain and protect the progressive gains workers secured in the 2019 PIC Amendment Act, namely worker selected representatives and clear criteria for Board appointments, checks and balances upon the executive authority, progressive investment mandates and the required public disclosure of all listed and unlisted investments."
The federation said it would continue engaging with the Presidency, National Treasury and Parliament to ensure that workers' retirement savings remain protected and that all allegations of corruption and state capture at the PIC are thoroughly investigated.
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