Will president side with inquiry recommendation?
President Cyril Ramaphosa is on a possible collision course with trade union federation Cosatu and ANC top brass over the governance of Africa’s biggest asset manager – the Public Investment Corporation (PIC).
That is if he implements the recommendation by the commission of inquiry into the PIC, that a deputy minister of finance should not be made the chairperson of the powerful institution, which manages assets in excess of R2-trillion.
Traditionally, the deputy finance minister has always assumed the role of the chairman of the PIC board, since a cabinet decision in 2008.
However, the current interim board is headed by former Nedbank chairman Reuel Khoza, who is coming from the private sector.
Khoza’s appointment raised eyebrows in the ANC as it broke with tradition.
“The chairperson has traditionally been deputy minister of finance. It is noteworthy that the PIC Act Amendment Bill codi es this tradition,” the report of the commission, released by Ramaphosa this week, states.
“At the hearings, former directors and senior executives of the PIC were not in favour of appointing the DM [deputy finance minister], whereas the Congress of South African Trade Unions [Cosatu], in particular, was in favour”.
The report adds: “The deputy minister of finance should not be the PIC chairperson. This has caused considerable instability. Skills needed to chair the board may well be different from those that the deputy finance minister brings.”
In July last year, the ANC national executive committee (NEC) flagged Khoza’s appointment.
There were fears among ANC groupings that allowing a private person would disadvantage them from controlling the PIC, which is a major source of power and patronage.
“The ANC noted with concern the departure from the past practice and a 2008 cabinet decision that the PIC should be chaired by the deputy finance minister, with the recent appointment of a chairperson of the PIC from the private sector. The NEC decided that the matter should be taken up by ANC deployees,” the governing party said at the time.
In a con dential political overview to the NEC meeting in July last year, Ramaphosa said the chairing of the PIC was raised.
“The chairing of PIC board by deputy minister was a decision by cabinet in 2008,” he said.
Presidency spokesperson Khusela Diko said careful consideration was to be given to the recommendations made on the composition of the board and selection
of members, including the chairperson.
“National Treasury is tasked with leading this process of review and it is only at its conclusion that a decision either way can be made,” she said.
Cosatu spokesman Sizwe Pamla said the labour federation still going through the voluminous report and would comment later.
By George Matlala
matlalag@sundayworld.co.za
