PIC lost over R100bn when Zuma fired Nene - CEO

Former finance minister Nhlanhla Nene. (Bloomberg)
Former finance minister Nhlanhla Nene. (Bloomberg)
Cape Town - The funds that invest money with the Public Investment Corporation (PIC) lost more than R100bn when President Jacob Zuma fired former finance minister Nhlanhla Nene on 9 December 2015, said Daniel Matjila, CEO of the organisation.
 
The PIC appeared before the standing committee on finance on Tuesday, responding to questions from MPs about its investment mandates and details about the entities and companies it invests in.
 
DA shadow minister of finance, David Maynier, asked the PIC what impact the events of the so-called “9/12” - when Nene was briefly replaced with Des van Rooyen as finance minister - had on the assets it manages.
 
According to Matjila, the Government Employees Pension Fund lost R95bn, the UIF lost R7bn, the Compensation Fund lost R3bn, while other funds forbore R1.2bn. “However, beyond two days we’ve seen a significant recovery,” Matjila added.

Maynier said in a statement that the PIC’s admission is a stark reminder of how much damage was done to pensioners’ savings. “It serves as proof that President Jacob Zuma was dead wrong when he claimed the effect of his disastrous decisions was ‘exaggerated’ in South Africa.”

In January this year, Zuma said the markets overreacted when he replaced Nene and people “exaggerated" the situation. He insisted that it had been the right decision to appoint Van Rooyen.


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