Jonas cautions PIC on SOE investments

 
Jonas was attending a meeting of the Standing Committee on Finance on Tuesday during which the Public Investment Corporation (PIC) and the Government Employees Pension Fund gave an update on their respective quarterly reports.
 
Dr Daniel Matjila, Chief Executive Officer of the PIC, said in his presentation that the body has allocated more than R196bn to SOEs in the past year of which 88% is in the bond market.
 
DA member Alf Lees, however, questioned the PIC’s investment in SOEs, asking if it’s producing the necessary return on investment.
 
Responding to a question, Jonas acknowledged that the PIC needed to balance its mandate to invest in companies that will serve South Africa’s developmental agenda with the imperative to yield a positive return on investments.
 
“There’s a big debate about the mandate of the PIC. But we need to find a balance between transformation and getting value for money. Yes, the PIC needs to play a transformational role, but not to the detriment of investors,” Jonas said.
 
“On investing in SOEs we need to heighten our due diligence process, as some aren’t making the progress at the pace we think they should.”
 
The PIC, which oversees the bulk of the South African government’s pension fund money and is mandated to make investments on its behalf, faced a grilling from MPs about its investment mandate and whether there is any political meddling when such decisions are made.
 
David Maynier, DA MP and Floyd Shivambu from the EFF asked the PIC CEO, Daniel Matjila, if he had ever met with the controversial Gupta family about possible investments.
 
“I personally haven’t met any of them,” Matjila responded, “but I don’t know if anybody else (at the PIC) has.”
 
The Guptas' influence in government affairs came to the forefront last month when senior figures, including Jonas, went public to say the family had exerted undue sway, including offering cabinet positions.
 
The Guptas have business interests in a number of businesses, ranging from media to mining.
 
MPs also questioned the PIC about “questionable” direct loans to “obscure” companies, and requested to have sight of the body’s investment policy.
 
Matjila undertook to respond to these questions in writing, which would serve before the committee in due course.