Warren Thompson of Moneyweb spoke last week to Abel Sithole, principal executive officer of the Government Employees Pension Fund (GEPF), following allegations that the board of the Public Investment Corporation (PIC) was going to oust its CEO, Dr Dan Matjila.  

The PIC manages approximately R1.8 trillion on behalf of the 1.2 million active members of the GEPF, whose membership comprises public servants across SA.  Sithole’s views were sought on the GEPF’s relationship with the PIC, as well as concerns regarding the GEPF being used to recapitalise the likes of SAA and potentially a host of other beleaguered state-owned entities.  Sithole explained the levers the GEPF has at its disposal to address any perceived weaknesses in governance at the PIC.  These include activating a provision in the law that gives it power to influence appointments at the PIC, as well as in an extreme scenario, terminating the PIC as the fund’s chosen investment manager.  But Sithole was quick to point out that thus far, they were happy with the working relationship they have with the institution, and this would only change if they felt the PIC did not have the interests of the 1.2 million active members of the GEPF front and centre.

• Read the transcript of this interview or listen to it at Moneyweb

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