Public Servants Association urges Mboweni to urgently replace PIC board members


JOHANNESBURG, April 11 – The Public Servants Association (PSA) said on Thursday it had requested Finance Minister Tito Mboweni to urgently deal with the appointment of directors of the Public Investment Corporation (PIC) to replace those who expressed a clear desire to resign.

On 1 February, nine non-executive directors resigned from the PIC based on various recent events that had destabilised the organisation.

They said their decision was also due to a concerted effort to discredit the board to the extent that there could not be any credibility to the work that was executed in fulfilling its fiduciary responsibilities.

But in a subsequent media release by the PIC four days later, it was confirmed that its board was still in place and that the non-executive directors were committed to remain as directors until the minister had appointed a new board.

In a statement, PSA general manager Ivan Fredericks said that its attorney on Wednesday addressed a letter to Mboweni, pointing out that in a media release issued on 1 February, the PIC stated that it had requested him to release the board.

“The wish of the non-executive members of the PIC board to resign, and the delay of almost three months in appointing replacements have created uncertainty and an impasse to the severe prejudice of the PIC, the Government Employees Pension Fund (GEPF) as its largest depositor, GEPF members, and PSA members as members of the GEPF,” Fredericks said.

“The controversy surrounding the PIC and the conduct of its board is not only acknowledged by members of the board but is a matter of public record and the subject of the judicial commission of inquiry.”

Fredericks also said that the PSA was extremely concerned about Mboweni’s delay to release present members of the board and to appoint replacements.  (ANA)