African News Agency
The Public Investment Corporation conceded yesterday that it had lost R99 billion on the markets over two days in December following the firing of then finance minister Nhlanhla Nene.
The admission was made by PIC chief executive Daniel Matjila before Parliament’s standing committee on finance in response to a question by DA MP David Maynier.
Matjila also disclosed that the Unemployment Insurance Fund lost R7bn and the Compensation Fund R3bn in the 48 hours after Nene was fired by President Jacob Zuma, who replaced him with Desmond van Rooyen, before bowing to pressure days later to bring back Pravin Gordhan to the key portfolio.
Maynier said: “This is a stark reminder of how much damage was done to pensioners‘ savings and proof that President Jacob Zuma was dead wrong when he claimed the effect of his disastrous decisions was ‘exaggerated’ |in South Africa.”
He added however, that the “real story” was not the losses suffered as a result of the shockwaves Nene’s firing sent through the markets, but Matjila’s commitment yesterday to respond in detail to MPs questions about the PIC’s investment in unlisted companies.
Later yesterday Labour Minister Mildred Oliphant responded to suggestions |that her department was not doing enough to combat unemployment by saying that the government’s investments with the PIC contributed to job creation.
“In terms of investment we (the government) have R1.8 billion through the PIC so that they can be able to assist those who want to establish businesses and to ensure that those businesses they support, create jobs,” |she told a media briefing following her department’s budget vote debate.
Labour director-general Thobile Lamathi added that he wanted to “dispel the notion that the money with PIC is just sitting there” as government received a return of roughly 5 percent on its investment. Some of the money was used to train the unemployed and to assist entrepreneurs.