PIC chief Apologies for R5 Billion Eskom Loan

JOHANNESBURG- Public Investment Corporation Chief  Dan Matjia was forced to apologize after the company failed to inform public servants after they complained they were not consulted when the investment manger advanced the R5 Billion funding to Eskom.

On Monday the PIC announced that it would, on behalf of the Government Employees Pension Fund (GEPF), advance a R5bn bridging facility to Eskom to fund operations in February.

“It is acknowledged that organised labour should have been consulted, but the principal in this relationship is the GEPF. “The PIC apologized to the PSA and committed to improving communication with all stakeholders and clients in future, together with GEPF,” said Deon Botha, head of corporate affairs for the PIC.

The CEO meet with the Public Service Association (PSA) following threats of legal action against the PIC board.

The PIC already holds R75bn in government-guaranteed Eskom bonds; R20bn in unguaranteed Eskom bonds; and a R3bn money-market instrument on behalf of the power utility.

Eskom is on a short fall of R20 Billion that needs to be raised by the end of February to fund operations until March.

Photo Credit- iOL


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