Government’s biggest investment group lost R100 billion after Zuma blunder
State-owned investment group, the Public Investment Corporation (PIC) lost more than R100 billion within two days after what has infamously become known as 9/12 – the day that president Jacob Zuma sacked former finance minister, Nhlanhla Nene.
According to David Maynier, DA Shadow Minister of Finance: the PIC lost R106.2 billion within 48 hours after Zuma’s announcement.
“BREAKING: The PIC concedes it lost R106,2bn within 48 hours after ‘9/12’!” Maynier tweeted on social media.
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.
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 R95 billion, the UIF lost R7 billion, the Compensation Fund lost R3 billion, while other funds forbore R1.2 billion.
“However, beyond two days we’ve seen a significant recovery,” Matjila added.
Maynier followed with a correction from the PIC, which said it in fact only lost R99 billion.
Rand after 9/12
The rand went into a free-fall following the announcement on 9 December by Zuma that he had replaced Nene with unknown ANC MP, David van Rooyen – only to replace him three days later with Nene’s former boss Pravin Gordhan.
The currency reached an all-time worst level of R17.99 on 11 January, after Zuma defended his appointment blunder within the finance department. He has since defended his actions again.
South African capital markets, meanwhile, posted significant losses and saw unprecedented activity following the president’s actions. A figure of R500 billion has been quoted.
The PIC is one of the largest investment managers in Africa today, managing assets of over R1.8 trillion. The registered financial services provider is wholly owned by the South African Government.
With Fin24
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