The allegations that the Ministry of Finance is trying to access Public Investment Corporation (PIC) funds to bail out failing State Owned Enterprises (SOEs) confirm the United Democratic Movement’s (UDM’s) long-held suspicion that the mafia styled ruling elite would, once cash-strapped, extend its grubby hands to workers’ pensions entrusted to them for safekeeping. The true intention of these transactions is not to bail out struggling SOEs, but rather to ensure that there is enough state resources to plunder for those “whose turn it is to eat”!

We therefore reject any attempts by government to use PIC funds to fund failing SOEs.

Bearing the aforementioned in mind, the UDM believes that steps should be taken to develop a mechanism to protect workers’ assets against abuse and misuse by government.

Such a mechanism should, among others, also ensure that workers, as a key stakeholder, have a voice in how and where their assets are invested and accessed. In addition, steps should be taken to restructure the PIC board to ensure that other stakeholders are accommodated and that it is not under the full control of government. We call for the implementation of more checks and balances, with minimal bureaucracy, such as risk mitigation systems and a watertight Code of Ethics.

We demand a comprehensive investigation of all transactions since 2009, as we believe that under Mr Zuma, the PIC may have been used as a source of funding for suspicious deals that have nothing to do with growing an inclusive and distributive economy.

Statement issued by:
Mr Nqabayomzi Kwankwa, MP
UDM Deputy President and Chief Whip