The South African Federation of Trade Unions (SAFTU) notes with deep concern the serious allegations of corruption, mismanagement, and governance collapse at the Public Investment Corporation (PIC), as set out in a letter by Deputy Minister Bantu Holomisa, President of the United Democratic Movement (UDM), addressed to President Cyril Ramaphosa and the Chairperson of the Standing Committee on Public Accounts (SCOPA) on 29 October 2025.
These allegations, if substantiated, point to a continuing pattern of financial irregularities, political interference, and reckless investment practices at an institution responsible for managing over R3.5 trillion in public servants’ pension and social funds. The gravity of these claims requires an immediate, transparent, and comprehensive investigation by competent authorities.
The Mpati Commission: A warning Ignored
The Judicial Commission of Inquiry into Allegations of Impropriety at the PIC (the Mpati Commission), appointed by President Ramaphosa in 2018, already revealed serious governance and ethical failure at the PIC.
The Commission exposed:
• Political capture and conflicts of interest in unlisted investments, particularly within the Isibaya Fund.
• Weak governance, poor accountability, and the manipulation of valuations;
• The need for independent oversight, transparent reporting, and ethical leadership.
The Mpati Commission made concrete recommendations, including:
• Strengthening the fiduciary integrity and independence of the PIC board;
• Establishing clear and transparent criteria for all investment decisions;
• Publishing regular disclosures on unlisted investments;
• Referring implicated individuals for disciplinary or criminal action; and
• Developing a code of conduct to prevent political influence.
Yet five years later, the UDM’s allegations suggest that many of these recommendations were either only partially implemented or completely ignored. The same fund , Isibaya, meant to advance developmental and empowerment investments, is again at the centre of controversy.
Allegations that demand Urgent Scrutiny.
The UDM’s letter details several concerning claims that must be thoroughly investigated, including:
• Irregularities in the Lanseria Airport Holdings transaction, involving unpaid loans revalued in a way that allegedly created artificial profits.
• A potentially inflated valuation in a proposed FlySafair investment, drawing parallels
With the halted Karan Beef deal.
• Internal power struggles and the suspension of senior executives, including the Chief Investment Officer, raising fears of factional interference;
• Bribery and extortion allegations involving senior PIC officials linked to the Unlisted Investments Division.
• Continued funding of loss-making enterprises, such as Daybreak Foods, despite long-standing warnings from the Mpati Commission about weak oversight.
SAFTU emphasises that these are allegations that must be tested through a lawful, evidence-based investigation, but the Federation also stresses that their seriousness cannot be ignored or downplayed. Workers Pensions Must Be Protected
The PIC holds the retirement savings of millions of public servants, teachers, nurses, police officers, and cleaners, whose deferred wages represent their only social security in old age.
When governance at the PIC collapses, it is the working class that suffers. Allegations of reckless investments, poor oversight, and political capture endanger the pensions of those who have devoted their lives to public service.
SAFTU notes the UDM’s concern that the Isibaya Fund, valued at approximately R175 billion, may be yielding negative returns, with high impairment ratios and opaque deal structures. If true, this represents a direct threat to workers’ savings and the financial stability of the Government Employees Pension Fund (GEPF).
SAFTU’s Call to Action.
In support of the UDM’s appeal, SAFTU calls for the following urgent steps:
1. SCOPA must convene public hearings with the PIC Board, the CEO, the Minister of Finance, and the GEPF to account for governance and investment practices.
2. The Special Investigating Unit (SIU) and Auditor-General must conduct an independent forensic audit into all unlisted investments, including the Isibaya Fund.
3. The Minister of Finance must present to Parliament a detailed report on the status of implementation of the Mpati Commission’s recommendations.
4. Immediate review and reconstitution of the PIC Board to ensure competence, integrity, and independence from political influence.
5. Public disclosure of all unlisted investment deals, including amounts disbursed, valuations and beneficiaries on a quarterly basis.
6. Performance-based accountability for dealmakers and executives, no bonuses for loss-making or irregular deals.
Transparency and Accountability Now
SAFTU reiterates that this is not only a question of financial management but a test of political will. The fight against corruption cannot remain rhetorical, it must be demonstrated through decisive action.
We insist that:
“Every cent of workers’ pension savings must be protected. Those responsible for mismanagement or abuse of public trust , wherever the evidence leads , must be held to account without fear or favour.
SAFTU will continue to monitor the developments closely and, if necessary, mobilise workers and the broader public to demand full transparency and accountability in the management of the nation’s pension assets.
A Statement was issued on behalf of SAFTU General Secretary Zwelinzima Vavi.
For media inquiries, contact the National Spokesperson at
Newton Masuku at:
Newton@saftu.org.za
0661682157
Media Officer
Asive Dyani
0719019564
