SACP statement on changes at the Public Investment Commission

15 March 2010

The SACP notes the decision by Brian Molefe not to accept the offer to renew his contract as the CEO of the Public Investment Commission (PIC). The SACP is of the view that this provides government with an important opportunity to reposition the PIC to play a much more developmental role whilst at the same time securing the long-term social security of the members of the Government Employees Pension Fund.

The SACP has in the past raised its concerns about the manner in which some of the PIC funds have been invested. We have been concerned that the PIC had used some of its funds to finance narrow BEE deals at the expense of more developmental investments aimed at transforming the current growth path of our economy for the benefit of the workers and the poor. The funding of the Elephant Consortium to buy shares in Telkom is a case in point, in which a small group of individuals were being enriched.

In the light of the very progressive resolutions adopted at Polokwane and at the 2008 Alliance Summits, and the publication of the Department of Economic Development Strategic Plan, it is now an opportune moment to reposition all development finance institutions (DFIs), including the PIC, in line with government priorities, which, amongst others, include the creation of decent work.

In this context, the SACP also wishes to support Minister Ebrahim Patel`s proposal that a certain percentage of retirement funds, including those in the PIC, should be invested in a manner that would support government priorities, create decent work and other interventions aimed at transforming the current growth path.

The SACP also welcomes government`s intentions to reposition the DFIs in line with our commitment to create a new growth path.

On its part the SACP intends to revive its financial sector campaign through renewed mobilization of the workers and the poor, but broaden the focus of this campaign to also include the re-alignment of the whole financial sector in our country (both private and public) to create a new growth path that will benefit the overwhelming majority of our people.

Issued by the SACP.

Contact:
Malesela Maleka
SACP Spokesperson – 082 226 1802