Mboweni must ensure PIC Board Chair isn’t just another cadre

18 February 2021

The Democratic Alliance (DA) welcomes the belated signing into law of the Public Investment Corporation (PIC) Amendment Act. The Act owes its origins to David Maynier, the then DA Shadow Minister of Finance, who introduced a private members bill that, although not enacted entirely as introduced, was adopted by Parliament.

Whilst this Act goes a long way in ensuring accountability and transparency at the distressed PIC, it does have a fatal flaw that was insisted upon by the ANC. This flaw is the insistence by the ANC that the PIC Board Chairperson had to be a Deputy Minister.

It is crucial to guard against further cadre deployment at state institutions and entities. It is for this reason that it is important to flag the issue of the Minister of Finance being given the power to appoint a Deputy Minister to the position of Chairperson of the PIC Board.

The DA’s Maynier Bill provided for the amendment act to go further in ensuring good governance at the PIC by mandating that the Board Chairperson must be an independent person appointed through a transparent selection process run by existing members of the PIC Board.

The DA also notes the statement by the PIC that the signing into law of the amendment act does not ensure immediate changes to governance and business practices at the corporation, as the Minister of Finance is endowed with the power to enact the amendments progressively.

We therefore call on Tito Mboweni, the Minister of Finance, to fast-track the implementation of the amendments so that the PIC can be turned around and proper governance practices can ensue without further delays.

Given the unfortunate inclusion of the provision that the board chair must be a Deputy Minister, we call on Minister Mboweni to use his best judgement when deciding on which Deputy Minister to appoint as Board Chairperson, and that the person entrusted with such a powerful position be qualified and experienced in the field of investment.

However there is little doubt that Minister Mboweni will enthusiastically appoint an ANC cadre carefully selected by the ANC Cadre Deployment Committee as the PIC Board Chairperson. Such an ANC cadre appointment will with little doubt prejudice the members of the Government Employees Pension Fund (GEPF) and other PIC clients.

It is imperative that, whatever powers members of the Cabinet have to root out corruption, those powers are exercised without fear or favour.

Issued by Alf Lees, DA Member of the Standing Committee on Public Accounts, 18 February 2021