Today's Labour News

The Star reports that public sector unions have welcomed the institution by Finance Minister Nhlanhla Nene of an independent investigation into the affairs of the Public Investment Corporation (PIC).

On Wednesday, the Public Service Association (PSA), a union representing 230 000 civil servants, said the probe was the only way to deal with allegations at the PIC and clear some of the misconceptions plaguing the crucial organisation.

PSA deputy general manager Tahir Maepa said: “We’ve been more on the side of procedure. “What we’re saying is that if the board has done an investigation and as a result of that were satisfied that Matjila did nothing wrong, then we don’t see any reason why these things should be rehashed.”

Maepa said the investigation would pave the way for the PIC, which manages public funds and assets in excess of R1.9 trillion, to continue with its work.

“The investigation will help everybody clear all these misconceptions. We can’t continuously be discussing allegations that are not tested. We welcome the minister’s wisdom to institute the investigation,” Maepa said.

Cosatu spokesperson Sizwe Pamla said an independent inquiry was a good step, but maintained what was happening at the PIC was a fight between elites over workers’ money.

“An independent inquiry is a good step to ascertain what has really happened.

“Our standing is that it is a battle between the elite over who has control of the workers.

“We are interested in (finding out) who has been doing what,” Pamla said

Earlier this week, Cosatu, the country’s biggest trade union federation, said it was consulting with its affiliates regarding attempts to remove Matjila.

Nene announced yesterday that he met and informed the PIC’s board of directors that he was instituting an inquiry and a forensic investigation into the body’s affairs and allegations against some executives.

Nene, who did not specify which executives were being probed, said the move was aimed at looking into “governance issues” at the PIC.

“Further details on the independent inquiry, including the name of its head as well as its terms of reference, will be announced in due course,” said Nene.

PIC chief executive Dan Matjila has been embroiled in controversy for months. A whistle-blower alleged that he used the PIC’s money to fund a project in which his girlfriend was involved.

An internal audit instituted by the funder cleared Matjila.

But opposition parties believe an independent investigation was needed.

DA spokesperson on finance David Maynier said the inquiry would also give those implicated in wrongdoing a chance to have a say in the matter.

Maynier said he hoped the inquiry and forensic investigation would “get to the bottom of the various allegations and begin to restore public trust in the PIC”.

“However, there is now a risk that the outcome of the independent inquiry may be used as an excuse to put important legislation, aimed at strengthening governance and boosting transparency at the PIC, on ice in Parliament,” Maynier said.

UDM president Bantu Holomisa said Nene’s instruction for an independent inquiry into the PIC’s affairs showed that “there must be prima facie evidence of wrongdoing”.

“We are also surprised that the CEO has in fact not been suspended. This smacks of favouritism and protection of a person that might be on the wrong side of the law once the commission gets to work.

“The UDM will consult with its lawyers on what the next step will be on our side, given that we have taken the minister to court,” Holomisa said.

The original of this report by Sibongile Mashaba & Bongani Nkosi appeared on page 5 of The Star of 26 July 2018

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