CAPE TOWN, Western Cape — The Democratic Alliance (DA) is intensifying its call for a Special Investigation Unit (SIU) investigation into PIC unlisted investments, having formally written to President Cyril Ramaphosa to mandate the probe. This urgent push comes amid growing alarm over the security of public pensions managed by the Public Investment Corporation (PIC), the nation’s largest asset manager overseeing approximately 3.7 trillion in assets.
The necessity of the matter is underscored by recent indications from Finance Minister Enoch Godongwana, who revealed that his department is currently evaluating the future trajectory of the PIC’s unlisted portfolios. The DA argues that a formal SIU mandate is the most critical step to recovering misappropriated pension funds and establishing firm, long-term accountability within the state-owned entity.
Speaking to the media in parliament, Andrew Bateman, the DA’s Deputy Spokesperson on Appropriation, condemned the alleged abuse of public pensioners. He outlined the party’s two-pronged legislative and investigative approach: first, the introduction of the Pension Protection Bill, a private member’s bill designed to guarantee that PIC directors are selected strictly based on merit, and second, the immediate demand for a comprehensive SIU probe into these opaque unlisted holdings.
Bateman emphasized the high stakes for the public, noting that a presidential mandate for an SIU investigation provides a crucial mechanism for transparency. “An SIU investigation gives the president the opportunity to ensure that South Africans know the truth, to attempt to recover what’s been lost to pensioners and workers funds, and to help to ensure that there is proper accountability,” Bateman stated.
He vowed that the DA would not stand down while government employees’ retirement savings remain vulnerable. Bateman pointed to the stark reality that approximately 1,900 workers have recently lost their jobs, occurring alongside allegations that the very public funds set aside to protect workers have been abused.
Independent financial experts echo the concerns surrounding these financial structures. Economist Dawie Roodt pointed out that while unlisted investments are not inherently flawed in principle, they carry distinct vulnerabilities. “There’s always the possibility that there could be some political shenanigans going on somewhere or somebody with a vested interest in this specific investment that shouldn’t have an interest in this investment,” Roodt cautioned.
Roodt further elaborated on the technical dangers, highlighting that price discovery remains a significant risk when dealing with unlisted assets, primarily because their true market value is unknown. This lack of transparent valuation, the DA argues, makes a presidential mandate for an SIU probe not just a political demand, but a financial necessity for the protection of South Africa’s workforce and retirees.
