Former Public Investment Corporation (PIC) CEO Dr Daniel Matjila has told of how the collapse of cement company AfriSam, "created serious tensions between the PIC and GEPF (Government Employees Pension Fund)."
According to Matjila, the PIC concluded a BEEE transaction 11 years ago when it spent R6 billion, as means of acquiring a 85% stake in the company that was owned by Holcim and the Aveng group at the time.
He, however, told the Mpati Commission of Inquiry that the global economic crisis in 2008 resulted in a significant erosion of the value of the PIC investment in AfriSam. He said by the end of 2010, the valuation on the original investment had dropped to R1.2 billion.
"In response to this negative situation, the PIC Board instituted a process of restructuring of the AfriSam balance sheet to save it from total collapse, which would, without doubt, have resulted in job loses measured in thousands."
Matjila said when the restructuring was concluded in 2013, up to 2000 jobs were saved.