Pension funds are not slush funds for SOEs: Cosatu

Cosatu welcomed the overhauling of the South African Airways (SAA) board, specifically than of its former chairwoman, Dudu Myeni, but said this was not enough. Picture: Waldo Swiegers/Bloomberg

Cosatu welcomed the overhauling of the South African Airways (SAA) board, specifically than of its former chairwoman, Dudu Myeni, but said this was not enough. Picture: Waldo Swiegers/Bloomberg

Published Nov 17, 2017

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Parliament - The Congress of South African Trade Unions (Cosatu) on Friday, came out strongly against the use of Public Investment Corporation (PIC) funds to bail out cash strapped state-owned enterprises, unless SAA becomes an investment worthy enterprises.

"Cosatu wants to make it clear to government that hte PIC is not a slush fund. It is not there to balance the budget," Cosatu parliamentary coordinator Matthew Parks said while briefing Parliament's standing committee on appropriations said. 

"It's is not a kitty for cash strapped ministries. It is not a bailout for funds for state owned enterprises that have been running into the ground by corrupt leaders."

Cosatu welcomed the overhauling of the South African Airways (SAA) board, specifically than of its former chairwoman, Dudu Myeni, but said this was not enough.

"I don't think the problems are limited to one individual, the looting is much deeper than that. Beyond that, you need to overhaul management because this corruption is so deep it was bigger than Dudu Myeni," said Parks.

"You still hear constant stories of looking across the board. We've got complaints from members about doors of the aircrafts being stolen, engines being stolen and nobody able to explain it."

Cosatu said it was concerned that those who have stolen from the State through "state capture" are not spending any time behind bars.

"It seems government is very reluctant to do that these times," said Parks.

"Our plea...is assist us because our members are very angry about this threat to use the PIC as a piggy bank for government."

Cosatu said only after the state-owned airline is cleaned up good governance is restored, and waste-making routes are done away, strategic investment would be considered, but it would not be a blank cheque.

The trade union federation said it also wanted SAA, along with Eskom and the Passenger Rail Agency of South Africa removed from the department of public enterprises (DPE).

"It has failed miserable. We really don't understand why we have this department," said Parks.

"We propose the staff of DPE absorbed by the DTI [department of trade and investment], or whatever."

African News Agency

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