Today's Labour News

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picBusiness Times reports that under the weight of scrutiny for alleged wrongdoing and impropriety, the entire board of the Public Investment Corp (PIC), Africa's largest pension manager, sent out a letter of resignation late on Friday.  

The development throws the manager of more than R2-trillion of assets into a deeper crisis.  The corporation manages the assets of the Government Employees Pension Fund (GEPF).  Since the start of 2019, the PIC has been the subject of an inquiry into some of its investment decisions, highlighted by its investment into technology company Ayo Technology.  Eyebrows were also raised by the institution's support of the now collapsed VBS Mutual Bank that benefited some senior PIC employees.  The board "took a view that things have reached a stage where every decision the board takes may run the risk of having the lowest respect in the eyes of the public", board chairperson and deputy finance minister Mondli Gungubele said on Friday.  He added:  "It is our view that next week the minister must have appointed a new board, call it interim, whatever you call it.  That is the wish of the board."  This turmoil comes at a time when the corporation faces some pressing investment decisions in the coming weeks, none as urgent as over the rescue of retailer Edcon.  The owner of Edgars, which is currently closing stores and reducing floor space, is trying to secure R3bn in funding, with the PIC being central to those talks.  Edcon employs close to 140,000 permanent and contract employees.

  • Read the report on this story by Asha Speckman, Mudiwa Gavaza, Ntando Thukwana & Penelope Mashego in full at BL Premium (paywall access only)
  • Read too, Finance minister to name interim PIC board this week, says spokesman, at Moneyweb
  • And also, Edcon makes headway in securing R3bn in funds to keep it going, at BusinessLive

Get other news reports at the SA Labour News home page