Cosatu gets its wish with worker representation on PIC board

Nehawu general secretary Zola Saphetha. African News Agency (ANA)

Nehawu general secretary Zola Saphetha. African News Agency (ANA)

Published Jul 10, 2019

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JOHANNESBURG – Cosatu’s call for worker representation in the board of the Public Investment Corporation (PIC) has been realised and finally paid dividends following the appointment of NEHAWU (National Education, Health and Allied Workers' Union) General Secretary Zola Saphetha in the interim board of the embattled institution.

 

COSATU had argued that the funds that were managed by the PIC belonged to workers as it was monies that belonged to pensioners who worked in government.

 

The Minister of Finance, Mr Tito Mboweni, announced on Wednesday that he has appointed an interim Board of Directors at the Public Investment Corporation following the en-masse resignation of the entire board towards the end of last year.  

 

As things stand, there had never been any union representatives on the PIC Board and over the last two years, COSATU had worked closely with the ANC MPs at Parliament to draft a PIC Amendment Bill to stem the flow of corruption, stabilise it and force it to be accountable.

 

Currently, the former CEO of the PIC Dr Dan Matjila is testifying before the Mpati Commission of Inquiry into impropriety at the PIC.

On Monday, he said he welcomes the representation of workers on the asset manager’s board just as long as processes are followed. 

Matjila was responding to questions posed during his testimony at the Mpati Commission.

Last month, COSATU, during its testimony, had called for a 50/50 percent employer and worker representation on the board. At the time, the trade union federation's parliamentary co-ordinator, Matthew Parks, lamented that despite continuous efforts by COSATU for the status quo to change, the PIC Act 23 of 2004 only made it possible for the employer to determine who sits on the board. 

"I don't have a problem with that as long as the process is in line with the requirements of the PIC.... The position is that whoever sits on the board is able to drive the mandate of the PIC," he said.

Matjila also made it clear that the board was solely responsible for governance at the PIC and they, the board of trustees within the Government Employee Pension Fund (GEPF), craft the mandate for the asset manager.

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