JOHANNESBURG, Gauteng — The Congress of South African Trade Unions (COSATU) has formally demanded a comprehensive Special Investigating Unit (SIU) probe into the escalating Public Investment Corporation (PIC) governance crisis. Triggered by the abrupt resignation of the PIC board, including chairperson and Deputy Finance Minister David Masondo, the federation is urging President Cyril Ramaphosa to deploy the SIU, the Hawks, and the Auditor-General to root out alleged corruption and financial malfeasance within the state asset manager.
Addressing immediate public fears regarding the security of retirement savings, COSATU Spokesperson Matthew Parks assured stakeholders that government pensions remain protected. He explained that the Government Employee Pension Fund (GEPF), which constitutes the bulk of the PIC’s portfolio, operates as a defined benefit scheme. Because retirement payouts are calculated strictly on salary levels and years of service, the state is legally bound to cover any financial shortfalls. This structural safeguard insulates workers from the PIC’s internal instability and applies equally to the Unemployment Insurance Fund (UIF) and the Compensation for Occupational Injuries and Diseases Fund (COIDF).
Despite these guarantees, Parks emphasized that the federation refuses to normalize financial impropriety. As the largest investment fund in South Africa and the broader African continent, the PIC manages a staggering 3.6 trillion rand, with over 97% of these assets belonging to workers. Parks warned that the institution remains highly vulnerable, having been a primary target for looting during the previous decade of state capture.
The call for external intervention is fueled by persistent whistleblower reports detailing dubious investment practices, political interference, and the influence of “tenderpreneurs” who allegedly fail to repay funds. Parks specifically highlighted the controversial Aopco investment as a recent example of the questionable decision-making that continues to plague the corporation. While acknowledging that PIC investments have successfully doubled from 1.8 trillion rand to 3.6 trillion rand since 2020 under recent leadership, he stressed that macro-level growth does not excuse micro-level corruption.
The current governance crisis has been exacerbated by a severe leadership vacuum. With six directors and the chairperson having resigned, and the current CEO placed on suspension, the fund is effectively rudderless. COSATU is pressing the Cabinet and the Minister of Finance to appoint an interim leadership authority within days. Parks cautioned that while a formal, publicly vetted board appointment process will rightfully take one to three months, the PIC cannot afford to operate without fiduciary oversight in the interim.
Highlighting the institution’s troubled executive history, Parks pointed to a pattern of instability at the CEO level that has hindered long-term accountability. He noted the resignation of Dan Majila, which was followed by the brief tenure of Matshepo More. More was placed on precautionary suspension in March 2019 over allegations of interfering with the Mpati Commission. Subsequently, Vuyani Hako served as acting CEO for a short period before Abel Sithole was appointed to the role. This revolving door of leadership, Parks argued, has allowed deep-seated corruption, largely inherited from the pre-2019 era, to persist.
To prevent a repeat of past scandals, COSATU is demanding that the President mandate the SIU, the Hawks, and the Auditor-General to investigate every PIC investment from A to Z. Parks noted that while listed equities on the JSE have built-in regulatory checks and balances, the unlisted investment portfolio remains highly susceptible to corrupt practices. This unlisted segment represents roughly 10% of the asset base, amounting to approximately 360 billion rand.
Looking toward the future, COSATU outlined strict criteria for the incoming board members. Parks insisted that appointees must be individuals of unimpeachable integrity, free from past scandals, and possessing the financial acumen to manage complex portfolios. Crucially, they must have the fortitude to resist pressure from politicians, internal officials, and business interests. Furthermore, in accordance with the PIC Act, the Public Service Bargaining Council will select three board representatives, ensuring that the workers whose money is at stake have a direct, protected voice in the fund’s governance.
COSATU remains confident that South Africa possesses the requisite talent to stabilize the institution. However, Parks concluded that speed is of the essence, warning that any delay in establishing interim leadership and launching thorough, independent investigations will only allow the rot to continue unchecked.
