Johannesburg - A South African opposition party leader requested the nation’s graft ombudsman to investigate whether the Public Investment Corporation, which manages state workers’ pensions, diverted about R40 million ($2.4 million) to the ruling African National Congress. The party denied receiving the money.
“I did send a letter to the Public Protector asking her to verify the authenticity or otherwise of these serious allegations that the PIC” used the money it manages to help fund the ANC, Bantu Holomisa, the head of the United Democratic Movement, said by phone on Wednesday. He declined to disclose who gave him the information.
Public Protector Thuli Madonsela’s office acknowledged receiving Holomisa’s letter and said assessors were deciding whether to investigate.
Under South African law, political parties are not required to reveal where they get their money. Civil rights groups have said the lack of transparency feeds corruption.
ANC Treasurer Zweli Mkhize said Holomisa’s allegations were “false and baseless” and pledged to cooperate with any investigation if requested to do so. “The ANC has no knowledge of these transactions, nor any record of such monies being paid to the organisation,” he said in an e-mailed statement.
Holomisa’s request for the probe was reported earlier Wednesday by Business Day. The PIC money was used to pay party employees’ salaries and fund its 104th anniversary celebrations earlier this month, the Johannesburg-based newspaper said.
“The PIC has not been approached by the Public Protector and it is not aware of these allegations,” Sekgoela Sekgoela, a spokesman for the PIC, which is Africa’s biggest money manager with about 1.6 trillion rand in assets, said in an e-mailed reply to questions. “However, should the Public Protector investigate any transactions, the PIC will give its full cooperation.”
BLOOMBERG