JOHANNESBURG, Gauteng — The Congress of South African Trade Unions (COSATU) is urgently demanding a Special Investigating Unit (SIU) probe into the deepening governance crisis at the Public Investment Corporation (PIC). Following the sudden resignation of the PIC board, including chairperson and Deputy Finance Minister David Masondo, the federation has called on President Cyril Ramaphosa to intervene immediately to safeguard the 3.6 trillion rand fund that manages public servants’ pensions.
COSATU Spokesperson Matthew Parks addressed the mounting concerns, emphasizing that while government pensions remain secure for now, the federation will not tolerate corruption, wasteful expenditure, or state capture. Parks clarified that the Government Employee Pension Fund (GEPF), which constitutes the majority of assets invested by the PIC, operates as a defined benefit scheme. Consequently, public servants’ retirement benefits are protected regardless of the PIC’s internal turmoil or investment performance, as the state is legally obligated to cover any shortfalls. This same protection extends to the Unemployment Insurance Fund (UIF) and the Compensation for Occupational Injuries and Diseases Fund (COIDF).
Despite these assurances, Parks stressed that the PIC, as the single largest investment fund in South Africa and the entire African continent, must remain under intense scrutiny. Over 97% of the fund comprises workers’ money. He highlighted that the institution has historically been a prime target for looting, citing recent whistleblower reports of dubious investments, interference by “tenderpreneurs,” unpaid debts, and political meddling. Parks specifically pointed to questionable investments, such as the Aopco investment, as ongoing causes for concern.
Acknowledging macro-level progress, Parks noted that PIC investments have successfully doubled from 1.8 trillion rand to 3.6 trillion rand since 2020 under the outgoing and previous boards. However, he warned that the sheer size of the fund makes it vulnerable to corruption falling through the cracks. With six directors and the chairperson having resigned, and the CEO currently on suspension, the PIC is facing a critical leadership vacuum.
To address this paralysis, COSATU is calling on the Cabinet, the President, and the Minister of Finance to swiftly establish an interim leadership structure within the next few days. Parks argued that the fund cannot afford to be “leadership listless” while a formal, vetted board is appointed—a public nomination and vetting process that could take one to three months to complete.
Furthermore, COSATU is urging the President to task the SIU, the Hawks, and the Auditor-General with a comprehensive, A-to-Z investigation of all PIC investments. Parks emphasized that any new board appointments must not interfere with ongoing investigations into the suspended CEO or controversial investments. He insisted that external, respected entities must uproot the “cancer of corruption” to prevent a recurrence of the scandals that plagued the institution during the era of state capture.
Reflecting on the institution’s history, Parks pointed to a troubling revolving door of chief executives that has bred instability. He referenced the tenure of past leaders such as Dan Majila, who resigned, and Mateo Mor, who was placed on precautionary suspension in March 2019 amid allegations of interfering with the Mpati Commission. Subsequent acting appointments, including figures like Vuyani Hako and Abel Sithole, underscore the prolonged executive instability at the fund.
Looking ahead, Parks outlined the caliber of individuals required for both the interim and permanent board roles. He stressed the need for leaders of unimpeachable integrity, free from scandals or “dodgy deals,” who possess the financial capacity to understand complex investments and the stature to resist interference from politicians, officials, and business interests. Additionally, he noted that the PIC Act mandates the Public Service Bargaining Council to select three board members from among its ranks, ensuring that workers’ representatives with the capacity to protect workers’ interests are directly involved in the governance structure.
COSATU remains confident that South Africa has sufficient skilled individuals to fill these roles, but stressed that swift action is imperative to resolve the current quagmire and restore public trust.
