PIC denies losing R100bn in pensions after December 9

File photo: Nadine Hutton.

File photo: Nadine Hutton.

Published May 12, 2016

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Johannesburg - The Public Investment Corporation (PIC) rebutted reports yesterday that the pensions of government employees lost R100 billion in two days in December after President Jacob Zuma axed Finance Minister Nhlanhla Nene.

“To state that the PIC has lost R100bn is factually incorrect,” it said in a statement.

“The facts are that there was a drop of approximately R100bn in the value of the PIC’s assets under management between December 9 and 12, 2015 due to market reaction following the events of December 9, 2015,” the statement reads.

“However, the markets started rerating after the appointment of Pravin Gordhan, as Minister of Finance, and the portfolio has since fully recovered,” it said.

The reports followed the PIC’s meeting with Parliament’s standing committee on finance on Tuesday, where PIC chief executive Dan Matjila was grilled about the PIC’s investment mandates.

The PIC invested R880 million to acquire a 25% stake in Independent News & Media South Africa in 2013 on behalf of the Government Employees Pension Fund (GEPF).

The stake was above the investments the GEPF held in other media groups, but not inordinately so.

At the time the deal was completed, the PIC held a 19.2% stake in the Times Media Group, as well as a 17.22% stake in Naspers, according to biznews.com.

The PIC told Parliament that it had acquired the stake because the media industry was largely untransformed in terms of black ownership.

BUSINESS REPORT

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