Editorial
1 minute read
7 Dec 2020
4:32 am

Don’t mess with people’s pensions PIC

Editorial

The investments were knocked by the downturn in the economy, the devastating Covid-19 pandemic, as well as the cost of malfeasance perpetrated by a few officials at the PIC.

Ayo was offered to the public at between R28 and R43 a share. The PIC elected to pay R43. The share is currently trading at R9. Image: Moneyweb

The Government Employees Pension Fund (GEPF) is a critically important social stabiliser – because it provides a financial future for millions of civil servants and their dependants. However, it has become apparent in the last few years that it could be vulnerable to exploitation … and that it has lost value because of that. About 87% of the investments in the fund are managed by the Public Investment Corporation (PIC), which has been under scrutiny for some dodgy financial deals. It is staggering that in its latest report, the GEPF reports losses of R214.4 billion for the year, and that...