The trade union federation Cosatu has appealed to the Cabinet demanding the immediate appointment of a new board of directors for the Public Investment Corporation (PIC). The federation warns that investigations into alleged corruption and management failures must continue despite the resignation of the current corporate board.
Cosatu acknowledged the resignation of the PIC board, including Deputy Minister of Finance Dr. David Masondo, as well as employee representatives. However, the federation highly praised the leadership of the previous composition, noting that PIC's managed assets have doubled. In Cosatu's view, the funds managed by PIC belong to South African workers and pensioners and must be protected from political interference and corruption.
The federation emphasized that the funds invested by PIC, such as the Public Service Pension Fund and the Unemployment Insurance Fund and Compensation for Occupational Injuries and Diseases, belong to workers and pensioners, not PIC officials, politicians, or entrepreneurs. Cosatu commended the previous board for strong investment growth, which led to an increase in assets from 1.8 trillion to 3.6 trillion rand over the last six years, significantly exceeding the performance of other funds and structures.
Despite impressive financial figures, the federation expressed deep concern that governance issues remain unresolved. Cosatu stated that serious cases of corruption, embezzlement, and state capture persist within PIC. The federation also expressed extreme disappointment over whistleblower reports of ongoing political interference in PIC appointments and investments.
Cosatu welcomed the decision by the outgoing board to refer the Acapulco investment related to Lanseria Airport to the Special Investigating Unit for further scrutiny. The federation insists that these and other corruption and governance investigations must not be blocked or buried after the board's resignation. The union strongly urged President Cyril Ramaphosa to instruct the SIU, with the support of the Auditor-General and 'Hawks', to investigate all PIC investments, listed and unlisted, and hold any individuals fully accountable for any instances of corruption.
Cosatu considers stability at PIC vital and calls on the Cabinet to promptly appoint a new board composed of competent and honest individuals. The federation also stressed that the appointment process must comply with the Public Investment Corporation Act, ensuring that three employee representatives are chosen through the Public Service Coordinating Bargaining Council. Looking ahead, Cosatu stated it would oppose any legislative changes weakening the protections introduced by the PIC Amendment Act of 2019, including the election of employee representatives and clear criteria for board appointments.
The commission requested medical documents after it became known that the North Western businessman, Sulaiman Karim, was allegedly seen at a shopping center in the Western Cape.
Lead evidence lawyer, Matthew Chaksalson, addressed the commission, demanding that Karim's doctors be required to provide his medical records. These dramatic claims surfaced on Wednesday during the Madlanga Commission hearing following the postponement of testimony from Wusimuzi 'Cat' Matlala.
Chaksalson informed the commission members that two whistleblowers independently reported seeing Karim at the shopping center, and they also claimed to have seen him during lunch.
Chaksalson noted that the commission expects to receive CCTV footage from the shopping center or Woolworths to verify these statements. These allegations arose against the backdrop of another no-show by Karim before the commission, who cited poor health.
Chaksalson argued that although the medical certificate presented on behalf of Karim explained his absence, it did not state that he was medically unfit to answer the commission's questions. He reminded the commission members that Karim had also failed to appear after receiving notification on June 17, and the commission is still awaiting a written statement with answers to its questions.
Furthermore, Chaksalson informed the investigation that financial reports related to Karim's companies—Ziggy, Tasmika, and Tamiez—remain unsubmitted, adding that these enterprises received millions of rands. Karim's lawyer, Kammil Premhid, rejected these accusations, insisting that his client is undergoing hospital treatment.
Premhid stated to the commission: 'My client is in the hospital.' He emphasized that the medical professional had already explained Karim's inability to attend and cautioned against relying on unverified whistleblower information, which could unfairly damage his client's reputation. Premhid also mentioned that he only learned about the whistleblowers' statements on Wednesday, which did not allow him to properly consult with Karim before the issue was raised at the hearing. The matter was adjourned until Friday, and Premhid notified the commission of his intention to file a motion in closed session.
