Cosatu: We are not happy with PIC's policies

Cosatu president Sdumo Dlamini.
Cosatu president Sdumo Dlamini.

Johannesburg - The Congress of South African Trade Unions (Cosatu) said it will step up pressure on the Public Investment Corp, which manages the pension funds of teachers, nurses and other state workers, to invest more aggressively in infrastructure and other projects to alleviate poverty.

“We are not happy, to put it bluntly, with the forms of investment of our pension funds,”  Cosatu president Sdumo Dlamini said on Thursday in an interview at Bloomberg’s Johannesburg office.

“Cosatu has consistently been raising concerns about how pension funds or retirement funds of workers are invested. Why don’t we see our monies being invested in areas where jobs are seen to be created?”

The Pretoria-based PIC oversees about R1.8trn ($123bn), making it the country’s largest investor. Its equity investments account for about 12% of the market capitalisation of the companies that trade on the Johannesburg Stock Exchange. The Johannesburg-based union federation’s demands that the fund manager play a more proactive role in addressing poverty come at a time when 27% of the workforce is unemployed and the economy is projected to grow at the slowest rate since a 2009 recession.

Projects linked to the government’s planned National Health Insurance, which could include building hospitals, is an example of the kind of investment plan Cosatu would support, Dlamini said.

“Most of their investments are in malls,” he said. “Malls are simply perpetuating profiteering by business people.”

‘Exporting jobs’

Bheki Ntshalintshali, Cosatu’s general secretary, said in the same interview that there is a lack of transparency at the PIC and criticised the fund manager for investing outside of South Africa.

“When you invest offshore, in the language of workers that means you are exporting jobs,” he said.

Cosatu, which has 1.9-million member and is in an alliance with the ruling African National Congress, plans to meet with PIC officials to try and persuade them to change their investment priorities and approach.

The PIC announced in May that it had set aside R70bn to help foster growth and development, create jobs and give the black majority a bigger stake in the economy.

The PIC didn’t immediately respond to calls and an e-mail seeking comment.

ZAR/USD
16.81
(+0.04)
ZAR/GBP
21.26
(-0.30)
ZAR/EUR
19.02
(-0.19)
ZAR/AUD
11.70
(+0.01)
ZAR/JPY
0.16
(-0.49)
Gold
1806.01
(+0.13)
Silver
18.70
(+0.15)
Platinum
837.00
(+0.42)
Brent Crude
42.31
(-2.17)
Palladium
1945.50
(-0.43)
All Share
55619.26
(-0.30)
Top 40
51352.85
(-0.36)
Financial 15
10412.22
(+0.70)
Industrial 25
76493.46
(-1.21)
Resource 10
52838.89
(+0.48)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1912 votes
I am taking a hit, but should be able to recover in the next year
23% - 2519 votes
My finances have been devastated
35% - 3745 votes
It's still too early to know what the full effect will be
25% - 2679 votes
Vote