South Africa: A Tangled Web Woven - the PIC and Independent Media

analysis

The findings of the Mpati Commission of Inquiry are yet to be publicly released, yet despite all good intentions, the new management of the PIC seems slow to act in important cases, such as its investment in Independent Media.

If the Public Investment Corporation (PIC) manages all of its assets the way it manages its investment in Independent Media and its loan to Sekunjalo Independent Media (SIM), perhaps the Government Employees Pension Fund (GEPF) should be worried.

Despite owning 25% of Independent Media, which has been losing money for years, the PIC does not have a representative on the board. As a major shareholder, it is entitled to this.

Dr Trueman Goba, who was the PIC's representative on the board, and who is still on the Independent board according to CIPC filings, resigned from the PIC, alongside the rest of the board on 19 February, 2019.

This means the PIC has no, or very little, independent insight into what is happening at the ailing firm.

In addition, SIM stopped servicing its debt to the PIC and missed a loan repayment due in August 2018, yet the PIC has been exceptionally slow to take action.

This is despite the fact that...

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