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BusinessLive reports that the Public Investment Corporation (PIC) has responded to suggestions that it invested in Edcon because of political pressure by saying that it was in the national interest to contribute to the turnaround of the struggling retailer.
“PIC’s investment is underpinned by sound commercial, social and governance principles,” it indicated in a statement. Deon Botha, head of corporate affairs at the PIC, asserted that the state-owned asset manager, which oversees more than R2-trillion in government employees’ pension money and other government funds, had followed the necessary procedures in making the investment in Edcon on behalf of the Unemployment Insurance Fund (UIF). He said the UIF’s investment was just one component of interventions by multiple stakeholders aimed at preventing the loss of over 140,000 jobs across the value chain of Edcon. “The result of this is that UIF is now one of the shareholders in Edcon. Had there been no intervention by both the UIF and other stakeholders, jobs would have been lost in Edcon and companies that service Edcon. In the final analysis, the UIF would have to bear the burden of having to pay unemployment insurance claims,” he said. Edcon CEO Grant Pattison stated on Thursday that unions had played an important role in getting the PIC on board. “It was in the national interest to prevent job losses. The unions did their job in placing pressure on the PIC and others to invest in the recapitalisation programme. We appreciated the help from unions,” Pattison stated.
- Read the full original of Alistair Anderson’s report in the above regard at BusinessLive
- Read the PIC’s statement at Polity
Get other news reports at the SA Labour News home page