The Economic Freedom Fighters (EFF) notes the judgment of the Gauteng High Court declaring the suspension of the Public Investment Corporation (PIC) Chief Executive Officer, Patrick Dlamini, unlawful. The judgment highlights the complete disregard for due process and proper governance in the manner in which the PIC Board sought to suspend its CEO.
The Court found that the Board acted outside its legal powers and failed to comply with the processes required by the Public Investment Corporation Act, its own delegations of authority, and the required ministerial approval process. This is very concerning for an institution entrusted with managing the retirement savings and wealth of millions of workers. The PIC cannot be governed through arbitrary decisions, factional battles, cronyism, and boardroom infighting, while the country’s economic crisis continues to deepen.
The EFF has consistently warned that the South African government and its entities are becoming increasingly consumed by the ANC’s political infighting, patronage, and struggles over positions and influence, while paying little attention to the fundamental economic crisis confronting the people. The PIC is now becoming another manifestation of this sickness.
The EFF is particularly concerned that the PIC’s enormous capital is not being sufficiently deployed towards the reindustrialisation of South Africa. The PIC’s unlisted investment portfolio presents a significant opportunity to reverse this trajectory. The unlisted portfolio provides greater flexibility, unlike the JSE listing, for long-term investments in productive assets and strategic industries than an exclusive reliance on the listed equities market. It is therefore unacceptable that this capital remains excessively informed by a conservative white financial establishment that has reduced the South African economy to financialisation, asset management, and the extraction of value, while the country’s productive base is neglected.
The EFF rejects the financialisation of the South African economy at the expense of industrialisation. The PIC must use its unlisted investment portfolio to finance the productive economy and build industries that will generate sustainable returns for workers while simultaneously expanding South Africa’s economic capacity.
Substantial expansion into rail, water, energy, ports, logistics, manufacturing and industrial infrastructure is necessary. South Africa requires rail infrastructure capable of moving goods efficiently and supporting industrial production. We require reliable energy to power factories and mines; water infrastructure to sustain agriculture, industry and human settlements; and efficient ports and logistics infrastructure to support domestic production and international trade.
The EFF therefore calls for the appointment of competent asset managers with the technical expertise to identify and manage long-term investments in productive sectors. The PIC requires investment professionals who understand industrial development and the long-term deployment of capital, and at the same time, there must be disciplined political leadership capable of providing a clear developmental direction.
Political leaders must set the strategic direction and protect the public interest, while competent professionals must manage investments according to strict financial, governance and performance requirements. Finally, the EFF calls for a comprehensive review of the governance of the PIC, and for accountability for those responsible for decisions that have now been declared unlawful by the courts
The EFF has formed temporary alliances with other opposition parties for specific issues.
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