Holomisa told retired Judge Lex Mpati’s PIC commission of inquiry on Wednesday that transformation was not a good reason for losing pensioners’ money.
“It goes against any moral standard to continue writing off billions in the name of black economic empowerment (BEE),” Holomisa said. “BEE can be done on a commercial basis and the banks have been doing it for decades. PIC-funded BEE transactions - and other poorly structured unlisted investments - that are losing money are a sophisticated way of looting from the state.”
Holomisa said the government should establish a separate fund to effect BEE transactions rather than risking and depleting workers’ pension funds.
“Not ideal,” he said, “but at least that approach could force a certain level of transparency and scrutiny as to who gets allocated shares and repeat empowerment will be difficult to effect.”