BusinessLive reports that the Federation of Unions of SA (Fedusa) was on the brink of recommending that the Government Employees Pension Fund (GEPF) fire the Public Investment Corporation (PIC) as the guardian of public servants’ retirement savings.  

This was the view of Matthew Parks, parliamentary co-ordinator for rival federation Cosatu, who appeared on Tuesday before the commission of inquiry into the governance and functioning of the PIC.  Parks said that Fedusa was eager to pull the GEPF’s funds from the care of the PIC following the “explosion” of allegations regarding state capture at the state-owned asset manager.  “Workers no longer feel that their money is safe, so they were on the verge of pulling out,” said Parks.  Public-sector workers’ unions wield enormous power at the PIC’s largest client, the GEPF, where they appoint half of the trustees on the fund’s board.  The GEPF accounts for 88% of the R2-trillion the PIC manages.  Parks said Cosatu was equally frustrated with what had transpired at the PIC and the manner in which it had engaged with them over their concerns.  “It is playing fast and loose, treating billions [of rands] like Smarties.  It’s difficult to answer the questions why the PIC has been allowed to run amok, because there is no accountability.  It’s like the Wild West,” he asserted  But Parks added that Cosatu was persuaded to continue working with the PIC for the time being.

• Read the full original of Warren Thompson’s report in the above regard at BusinessLive
• Read too, An end to PIC ‘treating billions like smarties’, at Moneyweb

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