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Bloomberg reports that the head of the Government Employee Pension Fund (GEPF) is retreating from his predecessor’s threat to withdraw money from the Public Investment Corporation (PIC), as he backs a turnaround at the scandal-plagued asset manager.
The fact that the former overseer of the GEPF is now at the helm of the state-owned PIC has also given Musa Mabesa the confidence to entrust the bulk of its R1.9 trillion portfolio to the money manager. Mabesa took over from Abel Sithole last month as principal executive officer of the GEPF after Sithole moved to the PIC. While Sithole had said shifting funds from the PIC to other managers was an option, Mabesa is opting to bolster scrutiny of the corporation and give it time to rebuild trust. “Diversifying who we give mandates to is a future discussion we can have. We have increased confidence in the PIC’s interim board — and we know Abe,” Mabesa said on Thursday. A judicial inquiry last year exposed lapses in the PIC’s governance and political interference in its investment decisions. The inquiry also highlighted the PIC’s reliance on the GEPF, which accounts for 86% of its funds under management, and oversees the retirement savings of more than 1.2 million civil servants. The filling of several high ranking vacant posts at the PIC also “improves functioning and provides comfort to us,” Mabesa said.
- Read the full original of the report in the above regard by Janice Kew and Antony Sguazzin at Moneyweb (https://www.moneyweb.co.za/news/companies-and-deals/africas-top-pension-fund-backs-scandal-plagued-pic/)
Get other news reports at the SA Labour News home page