Questions remain over PIC’s ‘unlisted portfolio’

While transparency is always desirable in enabling accountability, it is not absolute, says Wits school of governance academic director Ivor Sarakinsky.

Sarakinsky’s comment follows a call made yesterday by Democratic Alliance (DA) shadow finance minister David Maynier for the Public Investment Corporation (PIC) to make a detailed public disclosure on the R70 billion worth of investments in its 2017/18 “unlisted portfolio”.

Describing the latest stance adopted by the PIC as “an about-turn” on “greater transparency”, Maynier cited the corporation’s previous position of usually disclosing detailed information about investments in its “unlisted investment portfolio” in the past two years before the tabling before parliament of the medium-term budget policy statement by the finance minister.

“One of the first tests of the new Minister of Finance Tito Mboweni is whether he will support the disclosure of detailed information about R70 billion worth of investments made by the PIC in its 2017/18 unlisted investment portfolio,” said Maynier.

Maynier said the DA’s push for greater PIC transparency would serve as “a major disincentive to rent-seekers with political influence who want to raid the corporation”.

Sarakinsky said there were situations where investment transparency “might be counter-productive”.

“The problem is unlisted companies. There are no checks and balances, so greater transparency on these types of investments is important. For unlisted companies, PIC manager declarations based on Companies and Intellectual Property Commission shareholdings should be prerequisites for acquisitions,” he said.

– brians@citizen.co.za

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