PIC willing to gamble pension money on financially crippled Eskom
Note to Editors: Please find attached an English soundbite by Alf Lees MP.
The decision by the Public Investment Corporation (PIC) to advance a R5 billion bridging facility to Eskom is not only outrageous but a reckless gamble with pension money for government employees.
The PIC already has substantial exposure to Eskom debt and this latest injection will only increase the risk ratio of the Eskom debt it has on its loan books. The Government Employees Pension Fund (GEPF) is currently exposed to Eskom to the tune of approximately R 90 billion in bills and bonds.
Due to this enhanced risk on pension funds, the PIC and Eskom must release the terms of agreement for this loan, the interest that will be paid and when it’s expected to be paid back.
Government cannot raid the PIC to plug the financial holes that failing State Owned Enterprises continue digging for themselves due to corruption and poor corporate governance.
The willingness of the PIC to play fast and loose with pensioner’s money is one of the reasons why the DA has introduced the PIC Bill which will increase protection against poor investment decisions.
Statement issued by Alf Lees, DA Shadow Minister of Finance, 5 February 2018