The GEPF’s mandate for the PIC fund is still alarmingly weak
The PIC needs to be bulletproofed against corruption, and here the ball falls in the trustees’ court
A pot of R2-trillion of other people’s money is always going to attract flies.
The Mpati inquiry into the Public Investment Corporation (PIC) has tried to bulletproof the asset manager for the future as best it can. It has given guidance on a new structure for the PIC, proposed changes to investment decision-making, and provided an entirely new framework for the appointment of directors.
In short, these measures split the PIC into divisions, decentralise investment decisions, depoliticise board appointments with criteria for directors, take politicians and parliament out of the picture, and emphasise that directors owe their fiduciary duty to the PIC alone. They cannot be representatives of interest groups, such as labour or the executive arm of government, or of clients such as the Government Employees Pension Fund (GEPF), which must exercise independent oversight...