PIC billions will not be used to bail out SOEs, says Gigaba

Gigaba has clarified his stance on using billions held in in the Public Investment Corporation (PIC) to assist financially struggling government companies such as SAA.

In a statement issued on Monday, Gigaba said this would not happen and that PIC’s funds were secure.

“Minister of Finance Malusi Gigaba has noted with concern media reports that national treasury wants to use R100 billion of the funds in the Public Investment Corporation to bail out State Owned Enterprises.

“The minister finds these reports malicious and unconstructive. Such untrue reports deviate attention from what is important – finding a long term solution that will ensure SOES continue to contribute to economic development without being a burden on the fiscus.

“The Minister has called an urgent meeting with the PIC board to deal with this matter and other pressing issues. More information on the meeting will be provided soon‚” said the statement.

The DA issued a statement yesterday slamming Gigaba for keeping Myeni on the SAA board despite her ‘running the company into the ground.’

Reports that the National Treasury was trying to force the PIC to commit to providing an alarming R100 billion to bail out numerous struggling state-owned enterprises (SOEs), including R12 billion for South African Airways (SAA), were disturbing to say the least, DA spokesman Alf Lees said.

“The PIC oversees the biggest fund in Africa, managing some R1.9 trillion in assets mainly belonging to the Government Employees Pension Fund (GEPF),” he said.

“Gigaba must not be allowed to plunder the PIC and the future financial security of government employees just to bail out utterly dysfunctional state-owned enterprises that have been run into the ground under the ANC,” Lees said.

Additional reporting – African News Agency

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