Admin
10 Nov, 2025
Report back: R3.5 trillion at risk: the Public Investment Corporation’s governance collapse in the Lanseria Airport Holdings deal and other governance issues
Mr Nqabayomzi Kwankwa, MP UDM Deputy President and Leader in Parliament PO Box 15 Cape Town 8000 and Ms Thandi Nontenja, MP UDM National Treasurer and Chief Whip in the National Assembly Member of the Standing Committee on Public Accounts PO Box 15 Cape Town 8000 Dear Mr Kwankwa and Ms Nontenja Report back: R3.5 trillion at risk: the Public Investment Corporation’s governance collapse in the Lanseria Airport Holdings deal and other governance issues 1. I hereby request that you prepare the United Democratic Movement’s (UDM) parliamentary operations to address the issues outlined in this letter, with particular focus on the Party’s participation in the Standing Committee on Public Accounts (SCOPA) and the Standing Committee on Finance, and to begin gathering relevant information. I have already instructed Attorney Eric Mabuza of Mabuza Attorneys to obtain key information from Mr Patrick Dlamini, Chief Executive Officer of the Public Investment Corporation (PIC), as reflected in the attached correspondence. 2. On 29 October 2025, the UDM addressed a detailed letter to the President of the Republic, Mr Cyril Ramaphosa, and the SCOPA Chairperson, Mr Songezo Zibi, MP, under the subject “R3.5 trillion at risk: the Public Investment Corporation’s governance collapse demands action.” In that correspondence, I highlighted the grave risks posed by a series of recent and questionable transactions undertaken by the PIC, which endanger more than R3.5 trillion in pensioners’ funds, alongside widespread governance, ethical, and oversight failures within the institution. As you are aware, the UDM has already proposed several urgent interventions in that letter to address these systemic failures. 3. On 5 November 2025, the PIC Corporate Affairs Division, in the name of the PIC Board Chairperson and Deputy Minister of Finance, Dr David Masondo, issued a statement appeared designed to undermine the UDM’s position. 4. As a matter of interest, Deputy Minister Masondo contacted me, on the same day, personally after the statement was issued, distancing himself from its content and expressing concern about the manner in which the PIC had treated me. It appears that the statement was drafted within the PIC as a deliberate smokescreen and an attempt to deflect public attention from the Lanseria Airport Holdings deal by going on the offensive. Yet, in doing so, the PIC conceded that “…a legal review on the arbitration proceedings is underway…,” which only reinforces the view that where there is smoke, there is indeed fire. Why attack the UDM and me personally instead of providing a substantive response to each of the issues we raised in our letter of 29 October 2025? 5. On 8 November 2025, I again wrote to President Ramaphosa and SCOPA Chairperson Songezo Zibi, specifically concerning: 5.1. A letter from Werksmans Attorneys to Mabotja Attorneys titled: “PUBLIC INVESTMENT CORPORATION SOC LIMITED // ACAPULCO TRADE AND INVEST 164(RF) (PTY) LTD” dated 6 November 2025 and 5.2. Mabotja Attorneys’ response to the above entitled.: “LANSERIA AND RELATED MATTERS” of 7 November 2025. 5.3. In its correspondence, Werksmans Attorneys, acting on behalf of the PIC, wrote to Mabotja Attorneys, who represent Acapulco Trade and Invest 164 (Pty) Ltd, concerning the aftermath of an arbitration award in favour of Acapulco dated 17 September 2025, amounting to R411 282 264.44. The letter indicates that the PIC intends to review or challenge the award and has requested that the funds already deposited in Mabotja Attorneys’ trust account be frozen pending the outcome of that review. 5.4. In reply, Mabotja Attorneys issued a strongly worded and defensive response aimed at discrediting Werksmans Attorneys’ letter on behalf of the PIC and portraying Acapulco as the aggrieved party. The exchange highlights growing tension between Acapulco, Mr Patrick Dlamini, and Harith General Partners and its founder, Mr Tshepo Mahloele, who appears to be a key figure at the centre of the dispute. 6. What prompted Mr Dlamini to act so suddenly? Was it his own initiative, or did the PIC Board finally intervene in a last-minute attempt to salvage what remains of the institution’s credibility and reputation? 7. There appears to be a significant fallout between the PIC and Acapulco Trade and Invest 164 (Pty) Ltd, the BEE partner in the Lanseria Airport Holdings deal. Despite Acapulco having defaulted on a R333 million loan, which grew to approximately R600 million with interest, the PIC nevertheless proceeded to pay just over R411 million to Acapulco after an arbitration process upheld a contested valuation conducted by Crowe, a so-called external valuer. This payout has reportedly angered the PIC Board, which has since moved to freeze the funds and is said to be considering legal action. These developments point to growing internal discord within the PIC and raise serious concerns about a potential governance collapse within the institution. Why did the Mr Dlamini and his executive team approve this transaction in the first place if they are now raising alarm after the fact? 8. Mr Dlamini’s professional history continues to raise serious governance concerns. In Mabotja Attorneys’ letter of 7 November 2025, it is alleged that he has maintained a close personal and professional relationship with Mr Mahloele and Harith General Partners, including attending a celebratory gathering at Mr Mahloele’s Bryanston home shortly after his appointment as PIC CEO. This allegation adds to a pattern first documented during his tenure as CEO of the Development Bank of Southern Africa, when serious accusations of mismanagement, maladministration and possible corruption the UDM brought to the attention of SCOPA in October 2020. At that time, concerns were raised about his association with Mr Mahloele and Harith, particularly around the Poseidon funding matter and other questionable transactions that appeared to benefit politically connected entities. Now, as head of the PIC, the same allegations of conflict of interest, irregular investment decisions and weak governance have resurfaced, most notably in the Lanseria Airport Holdings and FlySafair dealings involving Harith-linked interests. This recurring pattern points to an entrenched network of influence between public finance institutions and private business interests that requires urgent and independent investigation. 9. In its letter of 29 October 2025, the UDM made two key recommendations: 9.1. That SCOPA convene urgent public hearings with the PIC Board, the Chief Executive Officer, and the Government Employees Pension Fund (GEPF) to account for ongoing governance failures, ethical breaches, and poor investment decisions. 9.2. That the Auditor-General and the Special Investigating Unit (SIU) conduct a forensic audit of the Isibaya Fund and the Unlisted Investments Division, with a particular focus on politically connected transactions, loss-making projects, and compliance with the recommendations of the Mpati Commission. The Lanseria transaction, which was initiated in 2013, must be included in the scope of investigation as this appears to be where the shenanigans first began. Questions remain about the servicing of the loan through dividends. Were any ever declared by the Government Employees Pension Fund, the PIC, Acapulco, or Harith General Partners? 10. Equally concerning is the reported involvement of Harith General Partners in raising funds to acquire a stake in FlySafair. It is important to recall that the UDM previously intervened to stop the South African Airways (SAA) transaction after informing President Ramaphosa and then Minister of Public Enterprises Pravin Gordhan, following Gordhan’s 11 June 2021 announcement that the Takatso Consortium, led in part by Harith General Partners owned by Mr Tshepo Mahloele, had been selected as the preferred bidder to acquire a 51% stake in SAA for R51. 11. A further and deeply troubling conflict of interest arises from the fact that Mr Dlamini previously served as Chairperson of the Lanseria Airport Holdings Board while simultaneously holding senior public office. According to the Companies and Intellectual Property Commission (CIPC) website, he still remains listed as a Non-Executive Director of Lanseria Holdings (K2012204048), Lanseria Airport 1993 (M1993004101), Lanseria Airport Investments (M2002025907) and Lanseria International Airport (M1991001749). His continued association with these entities, which have direct financial dealings with the PIC, raises serious questions about the independence and propriety of decisions taken under his leadership. This dual involvement suggests that Mr Dlamini may have had access to privileged information regarding the airport’s operations and valuation, both before and after the disputed PIC investment. When considered alongside the issues raised in Mabotja Attorneys’ letter concerning his relationship with Harith General Partners and its founder, Mr Tshepo Mahloele, this overlap of roles points to a possible conflict of interest that warrants urgent scrutiny by the relevant oversight bodies. Now, the same players appear to be seeking to use public funds for private investment ventures. We have not forgotten the Mpati Commission’s damning findings against these entities. 12. The Auditor-General, acting under the auspices of SCOPA, remains the only credible authority capable of conducting a comprehensive review of the Lanseria deal and related transactions, given that public money is once again at stake. 13. The UDM should maintain its position that safeguarding public pension funds is a matter of national importance. It is imperative that decisive intervention takes place to ensure the PIC is never exploited as a vehicle for political patronage, and that the more than R3 trillion in assets under its management are administered with the highest levels of integrity, professionalism, and accountability. Yours sincerely Deputy Minister Bantu Holomisa, MP President of the United Democratic Movement Copied to: • Mr Matamela Cyril Ramaphosa – President of the Republic of South Africa • Mr Enoch Godongwana, MP - Minister of Finance • Dr David Masondo, MP - Deputy Minister of Finance and Chairperson of the Board of the Public Investment Corporation • Ms Thoko Didiza, MP - Speaker of the National Assembly of South Africa • Mr Songezo Zibi, MP - Chairperson of the Standing Committee on Public Accounts • Dr Mkhacani Maswanganyi, MP - Chairperson of the Standing Committee on Finance • Mr Patrick Dlamini - Chief Executive Officer, Public Investment Corporation • Mr Musa Mabesa - Principal Executive Officer, Government Employees Pension Fund • Ms Tsakani Maluleke - Auditor-General of South Africa • Adv Andy Mothibi - Head of the Special Investigating Unit • Mr Eric Mabuza – Mabuza Attorneys
Admin
17 Jun, 2020
DBSA: looting of state resources by some of the same people involved in the Public Investment Corporation saga
Dear Mr President DBSA: looting of state resources by some of the same people involved in the Public Investment Corporation saga 1. I write to you with grave concern over the apparent looting of state resources by some of the very same individuals that were found to have had enhanced ability to secure easy access to Public Investment Corporation (PIC) funds. We seem to have the same style of legal corruption, but this time it is at the Development Bank of Southern Africa (DBSA). A curious feature, however, is the emergence of the involvement of the Chairperson of the Government Employees Pension Fund (GEPF). Elitist people seem to behave like locusts that hop from one source of easy funding to the next; voraciously consuming every opportunity they can generate through whatever means. Once they have depleted one source, they effortlessly jump to the next one with the same agenda – enriching themselves at any cost and patting themselves on the back for being such clever operators. 2. I believe your appointment of the Judicial Commission of Inquiry into allegations of impropriety at the PIC, under the leadership of the Honourable Justice Lex Mpati, (‘the Mpati Commission’), was, amongst other concerns, exactly to look into this kind of behaviour that now seems to rear its ugly head at the DBSA. 3. I wish to refer you to an observation made by, and a salient finding of, the Mpati Commission regarding a company called Harith. The Mpati Commission, on page 419, of its report to President Ramaphosa, directly quotes part of my submission, i.e.: “One of the most difficult tasks regarding dealing with the type of corruption that is alleged to have happened at the PIC is the sophisticated nature of the transactions. Corruption can come in two forms, legal and illegal corruption. Legal corruption occurs when the elite build a legal framework that protects corruption or manipulate existing legal framework without necessarily breaking the law.’ The Mpati Commission continued saying that: “When going through the story of Harith, these words resonate.” In paragraph 62 on page 434 the Mpati Commission also stated that: “Harith’s conduct was driven by financial reward to its employees and management, and not by returns to the GEPF. In essence, the PIC initiative, created in keeping with government vision and PIC funding was ‘privatised’ such that those PIC employees and office bearers originally appointed to establish the various Funds and companies reaped rich rewards.” Clearly there is enough motivation to have, at the very least, immediately suspended Harith’s management of any and all of PIC/GEPF funds and launched further investigation. Has government taken any action to protect the PIC/GEPF from these self-enriching individuals? If not, why not? 4. To make matters worse, this recipe for plundering state resources is seemingly being replicated at the DBSA with the very same people involved. This time, at the face of it, with a new vehicle called Poseidon Pty Ltd, of which the shareholding is as follows: On a side note, according to Crede Capital Partners’ website, their team has managed two PIC projects i.e. “Univen” (R920 million) and the “Oceans Hotel Property Development” (R600 million). The Mpati Commission’s view that where Harith was concerned, “…the approach taken provided easy access to PIC funds, influence and including an enhanced ability to secure additional investment…”, it is therefore of interest to know that another company with close ties to Harith Group Chief Executive Officer, Tshepo Mahloele, had access to PIC contracts. 5. The DBSA has recently funded Poseidon to the tune of R50 million to conduct feasibility studies, for some kind of water project/s, in South Africa and other Southern African countries. Another R300 million is apparently still to be disbursed for the implementation of Poseidon’s project. 6. The Mpati Commission also said in its report on page 436, paragraph 67, that: “The Board of the PIC should examine whether the role played by either Mr [Jabu] Moleketi and Mr Mahloele breached their fiduciary duties or the fit and proper test required of a director in terms of the Companies Act.” With this knowledge in mind, please take note that Mr Moleketi (a former DBSA board chairperson) and Mr Mahloele (former head of the DBSA’s Private Sector Investment Arm) are both directors of Poseidon. Mr President, history is repeating; Mr Moleketi had fulfilled the highest leadership roles at both the PIC and Harith. Mr Mahloele, in turn, had been internally transferred (as the Mpati Commission described it) as head of the Pan African Infrastructure Development Fund (PAIDF) to Chief Executive Officer of Harith. The following persons are also Poseidon directors: 6.1. Dr Renosi Mokate (GEPF Board Chairperson), 6.2. Ms Lungile “Zee” Cele (independent non-executive director of Harith General Partners and a former board member of Eskom Holdings SOC Ltd), 6.3. Mr Roshan Morar (former PIC Deputy Chairperson, former Chairman of the South African National Roads Agency SOC Ltd, chairman of Ithala Development Finance Corporation (Ltd) and non-executive director of Harith General Partners) and 6.4. Ms Motseoa Alix-Mary Lugemwa (former Chairperson of the Gautrain Management Agency Board and non-executive director of PAIDF). This list reads like a dream-team of politically exposed persons (PEPs) who seemingly have access to public funds. It is especially worrying to find the name of Dr Renosi Mokate on this list; a scenario where a GEPF Chairperson has access to public funding using a private conduit, after having seen what happened at the PIC, is indefensible. She must be removed as GEPF Chairperson with immediate effect. It is also worth noting that Mr Roshan Morar is named and shamed in the Mpati Commission’s report regarding the Lancaster Steinhoff, Project Sierra case study. The Commission on page 41, paragraph 98, said that: “The chair of the IC [Investment Committee] was Mr Roshan Morar, a PIC non-executive director, who signed off on the IC resolution for this investment. At the same meeting, he was also appointed as a board member to L101 representing PIC’s interests which clearly indicates a conflict of interest.” 7. It would be advisable that Treasury quickly intervenes in the DBSA’s funding of Poseidon’s water project and that it immediately freezes the payment of the first tranche of R50 million, as well as the second tranche of R300 million implementation funding, until the Mpati Commission’s findings and recommendations are addressed. If the R50 million has already been disbursed, it must also be recouped in the meantime and it might be advisable to follow the paper trail to see if the money was spent for its intended purposes. 8. Another matter that I wish to address with you is that of Ms Irene Charnley and her inclusion on the PIC’s interim board. She allegedly received R1,7 billion (in today’s terms) from the PIC for her company, Smile Telecoms Limited. I wrote to Finance Minister Tito Mboweni about this matter on 3 June 2020 and have attached the letter for your ease of reference. Since writing that letter, I have heard that the PIC has written the R1,7 billion off as a bad investment. Moreover, it has come to my attention that Ms Charnley has also knocked on the DBSA’s door for funding. She received a USD 20 million loan, which she has failed to pay back. The Al Nahla Group, with whom she is partnered, is a Saudi Arabia-based company. The situation might mean the PIC and DBSA’s monies were channelled out of South Africa on purpose and someone else is smiling to the bank, because it definitely is not South African investors. We now know of two instances where Ms Charnley dipped into public funds, where the money seems to have evaporated into thin air. On what basis would a government serious about fighting corruption dispatch a person of this quality and competence to resuscitate a key public entity such as the PIC? The consequences for her actions should not have been to be rewarded, at the very least, she should be immediately removed as a member of the PIC’s interim board. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: Minister of Finance, Mr Tito Mboweni DBSA Chairperson, Mr Enoch Godongwana PIC Chairperson, Dr Reuel Khoza
Admin
03 Jun, 2020
Composition of PIC interim board: beneficiaries should not be members
Honourable Minister Mboweni QUESTIONS AROUND THE COMPOSITION OF PUBLIC INVESTMENT CORPORATION’S BOARD: BENEFICIARIES SHOULD NOT BE ALLOWED TO SERVE 1. Some time has lapsed since the 995-page report of the Judicial Commission of Inquiry into allegations of impropriety at the Public Investment Corporation, as lead by the Honourable Justice Lex Mpati (‘the Mpati Commission’), was handed over to President Ramaphosa and was released to the public on 12 March 2020. 2. One of the consequences of the Coronavirus lockdown is that I had the opportunity and time to read the voluminous Mpati Commission’s report and apply my mind to the size of the task of implementing its recommendations, over and above the management of the Public Investment Corporation’s (PIC) day-to-day business. 3. From my personal experience of the way the Mpati Commission functioned and reading its report, I believe that the commission did a sterling job. We will hopefully see sweeping changes that will lead to the PIC being a responsible organisation, as well as rooting out corruption and poor administration. South Africans will hopefully see the police, the Directorate for Priority Crime Investigation (Hawks) and the National Prosecuting Authority continue investigating and bring culprits to book. 4. Regarding the implementation of the Mpati Commission’s recommendations at the PIC, the complexity of the job ahead and the fortitude required to complete it requires the most competent, qualified, and trustworthy individuals. The PIC’s board and administrators must have the best interests of the PIC, and by extension the South African Government Employees Pension Fund (GEPF), at heart. 5. This knowledge and given the poor track-record of past PIC boards brought me to my next exercise, which was to look at the composition of the PIC’s incumbent interim board which you appointed in consultation with cabinet almost a year ago. 6. To my surprise, in doing my quick study, I came across an individual who now sits on the PIC’s interim board, who is a past PIC beneficiary. 7. That person is Ms Irene Charnley; the company is her Smile Telecoms Limited, to which the PIC committed an investment of USD 100,000,000 in 2015. This is a little more than R1,7 billion when calculated at today’s Rand/Dollar exchange rate. The PIC Investment Details sheet where I obtained this information, is available at https://www.pic.gov.za/DocPresentations/95.-Smile-Telecoms-Holdings.pdf). 8. It is an interesting side-note that, at the time, the now disgraced former PIC CEO, Dr Daniel Matjila, said: “We are excited about our investment in Smile Telecoms as it provides us with an opportunity to accelerate and realise our mandate to invest in the rest of the African continent.” 9. Given this information I have provided thus far, I could not help but ask whether history was repeating; and it left me feeling quite uneasy. 10. This discovery piqued my interest and I also did a cursory internet search on Smile Telecoms Limited (‘Smile’) and found the following information, the context of which will become clear in my later questions to you: 10.1. “Capitalworks” is listed as Smile’s “partner” on its website but is named “CapitalWorks SSA” on the Investment Details sheet. Presumably, this name difference is due to there being different divisions of the same company. I then found an announcement that an entity called “Capitalworks Group”, in 2017, had launched “Africa Capitalworks”, an investment company, which aimed to raise USD 300 million to “…deploy permanent equity capital in mid-market companies in strategically selected sectors across Sub Sahara Africa (“SSA”) (excluding South Africa)”. This discovery in itself is not interesting, what however is, is that they had “… already secured early support and substantial investment, including from CDC, the UK’s development finance institution, and the Public Investment Corporation SOC Limited (PIC) on behalf of its client the South African Government Employees Pension Fund (GEPF).” 10.2. I also found a PIC document called “ISIBAYA DETAILED INVESTMENT SCHEDULE AS AT 31 MARCH 2017” which is available on, investigative journalism organisation, Amabhungane’s website at https://amabhungane.org/wp-content/uploads/2018/08/170331_PIC-Unlisted-assets.pdf. Under the column called “FRESG Performance” the following is written about Smile: • “Financially Underperforming – economic headwinds, devaluation of local currencies mainly Nigeria and stiff competition led to underperformance”, • “Owner Managed Companies – Corporate governance principles are compromised- Governance policy, Delegation of Authority, succession planning and risk management framework need to be in place” • “Establishment of Social and Ethics Committee to manage the Representatives of local people on the boards be increased to ensure legislation in countries that advocate local representation on the board.” 11. Given the above information the following questions arose in my mind: 11.1. Were you aware that Ms Charnley had been a PIC beneficiary when you appointed her as an interim board member? If so, do you consider this to be a healthy situation and what were your reasons for continuing with her appointment despite the knowledge? 11.2. What was the agreement in terms of the USD 100,000,000 investment the PIC made in Smile and has investment paid dividends, especially given the PIC’s 2017 conclusion that Smile was “financially underperforming”? What were the implications of this lack of performance? Did the PIC write off this investment and if so, would this not constitute mere looting? 11.3. The PIC concluded that Smile’s “Corporate governance principles are compromised” whilst the company was squarely under Ms Charnley’s management. Would you agree that this casts doubt on Ms Charnley’s suitability to function at board level? 11.4. Did CapitalWorks SSA/Capitalworks Group/Africa Capitalworks receive PIC/GEPF funding? If so, what are the details, and would you consider it compromising that a board member has yet another link to a PIC beneficiary? The United Democratic Movement would argue that there is enough evidence that warrants that Ms Charnley must vacate her seat on the PIC board immediately. One other matter I would like to raise with you is the appointment of Mr Abel Sithole as the new PIC CEO. It would serve us well to remember that the GEPF wrote off billions of rands in investment losses, as was reported in 2018, whilst he was that entity’s Principal Executive Officer. Some of those so-called investments were quite dodgy and this scenario means that Mr Sithole is a man who failed at his job. Surely there were other competent individuals available for your consideration. We do not want to conclude that his appointment is to merely clean-up the mess he was part of and covering tracks in the process. We look forward to your response. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
05 Apr, 2019
Mpati Commission should look at GEPF and PIC investment in Sibanye-Stillwater
The United Democratic Movement (UDM) wishes the Mpati Commission to take a deep look into the investment linkages between the Government Employees Pension Fund, the Public Investment Corporation and Sibanye-Stillwater. Sibanye had acquired the Stillwater Mining Company and is located and managed in two regions i.e. Southern Africa region and the United States region. We understand that the Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) has invested in Sibanye-Stillwater. The questions the UDM wishes the Commission of inquiry into allegations of impropriety regarding the Public Investment Corporation to ask, are, amongst others: • How much of the GEPF and the PIC’s monies are invested in this deal? • How much of that money lies outside our borders? • How was the deal structured and what does this mean for government workers’ pensions? • Why is Sibanye-Stillwater hellbent on retrenching South Africans thus jeopardising the future of hundreds-of-thousands of mineworkers, especially considering the impact that retrenchments have on these families where those salaries are their only source of income. To get to the bottom of the matter, the Mpati Commission should summon the aforementioned parties to testify before it, as well as the Association of Mineworkers and Construction Union which have made allegations of wrongdoing in the company. Issued by: Mr Bantu Holomisa, MP UDM President
Admin
04 Dec, 2018
GEPF’s R7,4 billion write-offs are shocking
The United Democratic Movement noted with disbelief, the Government Employees Pension Fund’s (GEPF) write-offs amounting to R7,4 billion for the 2017/2018 financial year. These write-offs are of direct consequence of some of the Public Investment Corporation’s (PIC) most controversial deals such as investments in Steinhoff/Lancaster 101, as well as with companies controlled by Iqbal Surve. All of which happened under the management of former PIC boss, Dr Dan Matjila. Something is rotten in the state of Denmark. Why were these PIC investments given the green light? Why was the GEPF board allowed to make these write-offs? Why was there a delay in appointing the PIC commission of inquiry? Has anything been swept under the carpet? Minister of Finance Tito Mboweni and his deputy, Mondli Gungubele has much to explain. The Mpati Commission of Inquiry must get to the bottom of this mess; sooner rather than later. It should, in particular, look at these transactions that led to the write-offs. The PIC board and Dan Matjila should not get away with this immoral and egregious abuse of people’s retirement money. Merely resigning from a position cannot be the end of the road, if corruption is proved, the guilty must go to jail. The state pensioners, whose moneys are invested at the PIC, have a right to be very worried about how the GEPF and PIC boards are handling their funds, because the powers that be has cast them to the wolves. In the meantime, the disciplinary action taken against any PIC staff members should be immediately suspended pending the outcome of the work to be done by the Mpati Commission. For further comment: Mr Bantu Holomisa, MP UDM President
Admin
29 Dec, 2017
#PIC #GEPF: employees lost R12bn of pension money with Steinhoff corruption! Any political party that (may) have benefitted through #Steinhoff should: #PayBackTheirMoney
Of course, the call to “pay back the money” was a legitimate demand for the return of taxpayer money illegitimately used to fund Nkandla, the “Gupta industry” and other sinister personal gains. Right now, there are other monies that should be paid back; that should be returned from whence it came. The Steinhoff debacle shows that corruption and unethical behaviour place people in the path of clear and present danger. The Public Investment Corporation (PIC) who invests and manages funds on behalf of the Government Employees Pension Fund (GEPF) announced on 13 December, a week after the Steinhoff collapse that: “It is important to note that notwithstanding the collapse in the Steinhoff share, the GEPF portfolio remains financially healthy, because of its diversified nature. It is also important to note that GEPF members’ benefits will not be changed by these developments, given that the GEPF is a defined benefit pension fund.” GEPF’s Steinhoff loss was 0.6% of its portfolio on 6 December. This means that for every R100 of GEPF value sixty cents were lost. Even if this could be described as a manageable setback, the reality remains that the Steinhoff debacle cost the PIC R12 billion! This is a dangerous situation, where civil servants’ pensions are adversely affected no matter who downplays the scenario. The Steinhoff powers that be should provide guarantees that this R12 billion will not disappear into nothing and that the money shall be paid back to government employees. On another note, perhaps the Steinhoff saga is also a turning point in private political party funding looking at the African National Congress and the Democratic Alliance’s refusal to lay bare their books. If perhaps they, or any other political party, benefitted in any way from Steinhoff they should also be held to account. Given that the PIC has invested in Steinhoff, each and every political leader, should own up and confirm or deny that their parties (and/or functionaries) have accepted money from any source associated with Steinhoff profits. Any and all Steinhoff related money, and every cent, must be returned, with interest, to the coffers of the providers of compromised money, to set off that R12 billion loss in government pensions. Why should workers lose money to greed and corruption? Issued by: Mr Bantu Holomisa, MP and UDM President
