Ricochet News

Nene’s sacking costs PIC over R100-billion CEO reveals

Nene’s sacking costs PIC over R100-billion CEO reveals

President Jacob Zuma’s shock ousting of Nhlanhla Nene as Finance Minister in December last year reportedly cost the Public Investment Corporation (PIC) more than R100-billion within 48 hours its CEO told the Standing Committee on Finance in Parliament on Tuesday.

Responding to a question by Democratic Alliance (DA) Shadow Minister of Finance David Maynier, Daniel Matjila reportedly stated that the Government Employees Pension Fund took the biggest hit with a loss of R95-billion, followed by the Unemployment Fund at R7-billion and the Compensation Fund with R3-billion.

“The PIC provides financial services to several large clients, including principally the Government Employees Pension Fund, and has R1.8-trillion in assets under management,” Maynier said in a statement afterwards.

“This is a stark reminder of  how much damage was done to pensioners ‘ savings and proof that President Zuma was dead wrong when he claimed the effect of his disastrous decisions was “exaggerated”.

Zuma’s replacing of Nene with little-known African National Congress (ANC) MP David van Rooyen resulted in the Rand plummeting to its low-level on record against the US Dollar, with the subsequent backlash forcing him to swap van Rooyen for then Co-operative Governance and Traditional Affairs Minister Pravin Gordhan.