File image: The Public Investment Corporation's (PIC) Chief Executive, Dr Daniel Matjila. (File picture: Dean Hutton).

CAPE TOWN - Dr Dan Matjila, Chief Executive Officer of the Public Investment Corporation (PIC) said at the Raging Bull Awards, that South Africa is compromised by its fake corporate governance in public institutions such as Steinhoff. 

Delivering the keynote address at the awards event, Matjila said that SA is at a crossroads with good corporate governance. 

"This occasion is to recognise and honour the top performers in the asset management industry. The Raging Bull Investment Summit Award comes at a particular time in South Africa. The Summit comes at a time where South Africa is at crossroads with corporate governance". 

“I need not mention the developments at Steinhoff which have resulted in the destruction in shareholder value”, said Matjila. 

He then made reference to the shocking body of evidence that points to fake corporate governance at public institutions. 

"This in turn deeply affects the returns of all stakeholders and impacts the economy at large", said Matjila. 

He said that stakeholders in both the public and private sector are enraged in lapses in corporate governance. 

Through their collective action, these stakeholders are asking recurring questions. 

"How long shall we put up with failed governance?"

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Matjila also touched on creating sustainable Alpha's for his clients. 

In order to create a "Green Alpha" which the PIC regards as a working together to build the transition to the next economy. 

In order to access returns over the benchmark, there has to be consistent and unified effort to effect change and grow portfolios over a reasonable period. 

This is something that the embattled Steinhoff can learn from. 

The focus that the country should take is to ease into steady growth, said Matjila. 

In order to effect this, there has to be a combination of Green Alpha. 

This includes consideration of environmental issues, social and governance issues. 

Social issues should be tackled to effect transformation. 

"If we look after the environment, address critical social issues including transformation and uphold good corporate governance across all assets in the portfolio, we can generate sustainable returns for all stakeholders", Matjila assured. 

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