The Public Protector
Hillcrest Office Park
175 Lunnon Street
Dear Advocate Madonsela
REQUEST FOR AN URGENT INVESTIGATION: Public Investment Corporation (PIC).
I take this opportunity to welcome and wish you and your office, a very successful year in the service of the nation, in 2016.
In this regard, I wish to table the following matter with you, so that you may investigate it appropriately for the benefit of the South African public.
I have anonymously received serious allegations with regard to the possible corruption in the Public Investment Corporation (PIC) fund. It looks like the institutionalised corruption, which has resulted to South Africa being downgraded by various global grading bodies, has extended its vicious arm to the pensions of government employees, Judges, Members of Parliament and others who are paid from the public purse.
It is alleged that, during the second week of December 2015, an amount of R40m was transferred from the PIC account to a company whose name is attached herein. This company is known for handling the PIC and government transactions.
It is further alleged that this R40m was meant to fund salaries of the ANC staff members and its Birthday Anniversary Celebrations held on the 8th of January 2016.
Another allegation is that, in January 2016, an amount of R2m was transferred from the PIC account to a company whose name is also attached, for the benefit of the ruling party.
You are further requested to investigate another allegation that the PIC is about to fund a company whose name is attached herein, with an amount of R1.5bn, in order for this company to purchase a 25% stake from another person who holds this stake with TOTAL Oil Company. I request you to investigate whether due diligence of this transaction was conducted and whether it is in accordance with the relevant laws governing the PIC.
Given the specific allegations above, it is clear that there is a need for a thorough and comprehensive investigation of how the PIC is managing all the monies entrusted with them. A judicial commission of enquiry may be relevant in order to ensure that these monies are not vulnerable to the whims of the political elite.
I look forward to your excellent investigative work on this matter.
President of the United Democratic Movement