Labour stalwart Frans Baleni has been included in the new board. File photo.
THE APPOINTMENT of deputy finance minister David Masondo as the new chairperson of the Public Investment Corporation (PIC) alongside labour stalwart Frans Baleni into the new look board has been hailed as positive by sectors of the economy.
This appointment has become effective after amendments to the PIC statutes earlier this year provided for a deputy finance minister or any other deputy minister in the economic cluster to chair the PIC board.
The State earlier this year has made an amendment to the PIC act to facilitate for a stronger transformation role for the PIC to play in the economy in view of previous controversies of the State funder which holds a huge chunk of civil servants funds.
This presents a slight, but important deviation from the past when the finance minister appointed the PIC board at his or her discretion, which now has to be endorsed by the Cabinet.
Analysts said the amendment to the act earlier this year has brought into play the confirmation that an economic cluster official would have a say in the running of the fund, whose majority stakeholder is the Government Employee Pension Fund.
“That is at odds with what the Mpati Commission had in mind.
“It wanted to depoliticise the governance system, but the PIC Amendment Bill entrenched the politicisation of it all and that is how we ended up with David Masondo being appointed today as the chairperson of the PIC,” said economist Khaya Sithole, who hailed the appointment of the new PIC board as an important moment in the recent history of the corporation.
The new bill provides for the first time for the appointment of three representatives selected by organised labour in the Public Service Collective Bargaining Council to ensure workers have oversight and a say in how their funds are invested hence the inclusion of Baleni, who has a strong trade union background, having been the past general secretary of the National Union of Mineworkers since 2006.
The new look PIC board includes among others: Ntombifuthi Mtoba, Tryphosa Ramano, Professor Bonke Dumisa, Esther Barbara Watson, Beverly Bouwer, Mongwena Mugwena Maluleke, Walter Hlaise, Lufuno Mulaudzi, Abel Sithole, Brian Mavuka and Makano Mosidi.
banele.ginindza@inl.co.za
BUSINESS REPORT ONLINE
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