The Public Investment Corporation (PIC) Amendment Act has been gazetted after being signed into law by President Cyril Ramaphosa, paving the way for greater oversight by stakeholders.
The Act empowers the Finance Minister to progressively implement amendments to ensure current governance structures and processes continue.
PIC CEO Abel Sithole welcomed the Amendment Act, saying it was a significant step towards great transparency and accountability in the PIC’s investment processes.
As a shareholder representative, the Finance Minister can designate the Deputy Finance Minister or any Deputy Minister in the economic cluster as chairperson of the board, in consultation with Cabinet.
The Act also requires the PIC to publish details of new investments on the PIC’s website, as well as yearly reports to the Finance Minister of the total number and details of significant transactions which require approval in terms of the Public Finance Management Act.
The PIC is also now required to publish and submit a report on all investments to the Finance Minister for tabling in Parliament and has to consider certain guidelines when investing deposits on behalf of clients.
“Ultimately, the PIC is accountable to its clients and their beneficiaries and to government as shareholder and guarantor of its clients. The new legislation provides for greater oversight by all stakeholders,” Sithole said.