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Home Archive of News Why are PIC funds being used to bail SOEs out?

Archive of News

Why are PIC funds being used to bail SOEs out?

The labour federation’s leaders apparently took the minister to task after his presentation on Monday, demanding the assurance that the crisis of the country’s burdened fiscus would not affect workers’ "hard-earned" pensions and savings. Cosatu’s biggest affiliate, Nehawu, has already stated its opposition to a potential bail-out of SAA by the PIC. The union said such a move would be an abuse of employees’ retirement funds, to rescue SAA, which was a "mismanaged and corrupt" entity.

Delegates to the CEC meeting were due to debate the minister’s presentation on Tuesday night. The PIC manages assets worth more than R1.8-trillion and invests funds on behalf of the Government Employees Pension Fund (GEPF) and other social funds. The Federation of Unions of SA (Fedusa) said that it would never agree that PIC funds could be used to bail out "mismanaged" government entities.

Source: SA Labour News



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