This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
Bloomberg reports that the Government Employees Pension Fund (GEPF) expects to cut the amount of money it allocates to a division of Public Investment Corporation (PIC) that has to date helped it fulfill some of its environment, social and governance aspirations.
The GEPF allowed a R70 billion allocation agreement with the PIC, the continent’s largest fund manager, to lapse in March and is now negotiating a new mandate. That, according to GEPF Head of Investments Sifiso Sibiya, will include “the introduction of more consequence management” for poor investment decisions. The GEPF’s decision comes after the R2.34 trillion PIC was the subject of a judicial inquiry that concentrated on its Isibaya Fund, which makes investments in unlisted assets and focuses on Black economic empowerment transactions and social infrastructure projects. While the GEPF, which oversees R2.09 trillion, will still benefit from the money that has been spent, no new investment can take place without a fresh mandate. The so-called Mpati Commission questioned the governance of the division and the flouting of investment procedures. “There would be a reduction (in the allocation), the extent to which will be communicated once the agreement is in place,” Sibiya said in an interview on Monday. Sibiya added that the size of the allocation would also be influenced by the impact the Covid-19 pandemic has had on business and the pension fund’s own strategic asset allocation. While it may take as long as a year to agree a new mandate the aim was to do so within six months, he indicated.
- Read the full original of the report in the above regard by Antony Sguazzin at Moneyweb
Get other news reports at the SA Labour News home page