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Mandate, not mismanagement: PIC clarifies position on unlisted investments and Daybreak

Mandate, not mismanagement: PIC clarifies position on unlisted investments and Daybreak

TimesLIVE10-06-2025
There are ongoing allegations that the Public Investment Corporation (PIC) has 'squandered R33bn' of pensioners' money on politically motivated investments. The PIC strongly denies these claims, arguing they misrepresent and oversimplify a complex investment process aimed at identifying opportunities in a broad market, where outcomes cannot be guaranteed.
While acknowledging the inherent risks associated with these investments, the PIC asserts that it remains committed to seeking opportunities with the highest likelihood of positive results. This issue has come to public attention recently due to the challenges faced by Daybreak Foods, which the PIC acquired in 2015 for R1.2bn. This investment was intended to achieve long-term sustainable returns while contributing to food security in the country and supporting economic transformation.
The PIC emphasises that the claims against it oversimplify the complexities of long-term developmental investing and the inherent risks that come with it.
The PIC manages more than R3-trillion in assets, with about R2.5-trillion allocated for public servants through the Government Employees Pension Fund (GEPF). The remainder of the assets represents clients whose beneficiaries are contributing workers across the country.
The PIC acknowledges the seriousness of its responsibilities and operates under a clear mandate that goes beyond simply maximising financial returns. This mandate includes making investments that foster economic development, industrialisation, job creation and broader transformation in South Africa.
Unlisted investments, such as Daybreak Foods, play a crucial role in our developmental mandate. Though there are operational and governance challenges at Daybreak Foods — currently undergoing business rescue — the PIC believes the criticism it has received presents an incomplete and misleading view of the situation. The PIC asserts that the ongoing business rescue process should not be seen as a sign of impending liquidation or a total loss. Rather, they view it as a strategic and legally sound method to stabilise the company, preserve more than 3,000 jobs and ultimately recover value for its clients, primarily government pensioners. Daybreak Foods supplies 7% of South Africa's poultry, making its ongoing operations essential for national food security.
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