Hunt Intensifies for Public Investment Corporation's Lost Billions Amid Governance Scrutiny
The Public Investment Corporation (PIC) faces renewed scrutiny over governance failures and distressed loans, despite reporting asset growth to R3.7 trillion. Deputy Finance Minister and PIC chairperson David Masondo has adopted a firm stance against loan defaulters, labeling them 'robbers' stealing from public servants. Civil society groups and the United Democratic Movement are calling for urgent parliamentary hearings and forensic probes into the PIC’s Isibaya Fund and unlisted investments, citing ethical breaches and poor decisions. The Mpati Commission previously found significant lapses in due diligence and policy adherence. While business sentiment is divided, with some defending the PIC against coordinated attacks, others highlight scandals involving entities like Steinhoff, VBS, and Daybreak Foods. Masondo emphasized recovery efforts, noting R10 billion recovered from a R19.3 billion debtors book, including significant amounts from Steinhoff. Approximately R30 billion in loans remain tied to financially distressed entities. The PIC continues to fund black-owned businesses as part of its transformation mandate, but pressure mounts for accountability regarding legacy investment scandals and compliance with commission recommendations.
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Hunt Intensifies for Public Investment Corporation's Lost Billions Amid Governance Scrutiny
The Public Investment Corporation (PIC) faces renewed scrutiny over governance failures and distressed loans, despite reporting asset growth to R3.7 trillion. Deputy Finance Minister and PIC chairperson David Masondo has adopted a firm stance against loan defaulters, labeling them 'robbers' stealing from public servants. Civil society groups and the United Democratic Movement are calling for urgent parliamentary hearings and forensic probes into the PIC’s Isibaya Fund and unlisted investments, citing ethical breaches and poor decisions. The Mpati Commission previously found significant lapses in due diligence and policy adherence. While business sentiment is divided, with some defending the PIC against coordinated attacks, others highlight scandals involving entities like Steinhoff, VBS, and Daybreak Foods. Masondo emphasized recovery efforts, noting R10 billion recovered from a R19.3 billion debtors book, including significant amounts from Steinhoff. Approximately R30 billion in loans remain tied to financially distressed entities. The PIC continues to fund black-owned businesses as part of its transformation mandate, but pressure mounts for accountability regarding legacy investment scandals and compliance with commission recommendations.
The Mail & Guardian