Deputy Minister of Finance David Masondo.
Image: GCIS
The DA have said that they will keep holding the Public Investment Corporation (PIC) and Board Chairperson, Deputy Finance Minister David Masondo, to account, announcing a new Bill to ensure that the chairperson role will be non-political.
The PIC is under scrutiny for its failure to implement the Mpati Commission recommendations and fresh claims of institutional instability.
Recently, non-executive directors Thabi Nkosi and Nosiphiwo Balfour resigned.
A governance crisis at the PIC was triggered by the precautionary suspension of CEO Patrick Dlamini, and subsequent intervention by the Financial Sector Conduct Authority (FSCA), which launched an investigation into the PIC due to rising concerns over governance, leadership stability and transparency.
In a town hall meeting with staff on Thursday, Masondo stressed that a precautionary suspension is not a finding of guilt and should never be interpreted as one. He added that the Board sought and received independent legal advice before taking its decision.
Masondo said the alternative would have been for the Board to ignore serious allegations placed before it. He conceded a Board entrusted with the retirement savings of millions of South Africans cannot selectively apply its governance responsibilities.
The DA held a briefing on Monday, led Dr Mark Burke and Andrew Bateman, in which they said they “will keep picking at the knitting of the lies of the ANC around the PIC”.
“We will keep collaborating with journalists. We will keep taking on reports from whistleblowers. We will use every mechanism, be that the media, be that the legislature, or be that any other forum that we need to use to keep to keep the PIC accountable.
“And don't forget, of course, that the PIC is increasingly collaborating with organisations here and abroad. And at some point, if it keeps going the direction it's going now, it does leave counterparties exposed for the way that they are engaging what's increasingly coming across as quite a corrupt entity.
“We will not back down from the fight of holding them accountable,” Burke said.
Dr Mark Burke of The Democratic Alliance held a media briefing on Monday to outline our next steps regarding the Public Investment Corporation (PIC).
Image: BHEKI RADEBE/ ANA Studio
Andrew Bateman of The Democratic Alliance held a media briefing on Monday to outline our next steps regarding the Public Investment Corporation (PIC).
Image: Bheki Radebe/ANA Studio
Burke and Bateman announced that the DA submitted its Pension Protection Bill to Parliament’s Constitutional and Legal Services, where they intend to table the Bill after processing their feedback.
“Under this short and decisive Bill, an independent panel, not a politician, will appoint the directors of the PIC. The chairperson will not be a Communist Party Deputy Minister, but an apolitical person appointed by other non-political persons.
“This Bill will implement the recommendations made by Judge Lex Mpati as far back as 2020. Recommendations that have until now been ignored,” Burke said.
The bill will require that the chairperson no longer be a deputy minister, and that no person holding a political office or having held a political office in the three years preceding their appointment will be permitted to serve as a director.
Some aspects of the bill include that the Standing Committee on Finance be responsible for the appointment of a Selection Panel for shortlisting non-executive directors. The Selection Panel will be responsible for proposing suitable non-executive directors to the Minister of Finance based on merit and the skills required. The Minister may reject a candidate director, but may not appoint a candidate who has not been proposed by the Panel. The executive directors will be appointed by the Board, not the Minister.
“Pension investments are supposed to be boring. They’re not supposed to be political. The Pension Protection Bill seeks to rectify an unacceptable situation that has cost public servants billions,” Burke said.
When asked if they had used Deputy Finance Minister Ashor Sarupen to engage on the PIC, Burke said that the ANC has “meticulously kept our deputy minister of finance out of anything touching the PIC”.
He said that delegated authority resides with Masondo.
“And to answer your question whether the Deputy Minister Sarupen has been trying to bring us to the attention of the ANC and Finance Minister Enoch Godongwana? Absolutely. We've repeatedly, in good faith, as we're always trying to do, engaged on this.
Deputy Ministers of Finance, (from left) Dr David Masondo and Ashor Sarupen, with Minister of Finance Enoch Godongwana in Cape Town.
Image: Kopano Tlape / GCIS
“But I'll also point out that Mr Godongwana himself has insisted that this legislative change is needed. And has said that the Mpati recommendation, as it relates to this requirement, needs to be implemented, and that can only happen with the legislative change.
“Yet, has failed to bring the requisite legislative amendments; the effect of that change then begs the question, why? Why does he take so long to do things that we all agree are needed?
“They've kept us out of the PIC, and we refused to let pensioners suffer because of internal ANC factional battles.”
He added that Masondo’s town hall was “one of the clearest signals that things are really bad out there”.
“PIC staffers are now complaining that this might be a place where their careers go to die.
“So what do I make of the Deputy Minister’s attempts to assuage the staff at the PIC that things are okay? I’ll say to him, keep lying… We won't stop keeping him to account.”
Masondo’s office has yet to respond. The Finance department said: “The Minister of Finance will not be commenting further on issues at the PIC in public.
“The Minister has noted and received communication from the Board and will, at an appropriate time, provide further details on the measures he is contemplating as the PIC’s shareholder to ensure a return to stability for the entity,” they said.