South Africa. Government pension fund freezes R70 billion mandate with PIC
The Government Employees Pension Fund, Africa’s biggest pension fund, said it may take as long as a year to negotiate a new mandate with Public Investment Corporation that will allow it to enter into new unlisted investment deals.
The PIC oversees a R70 billion unlisted investment fund for the GEPF, but its mandate lapsed in March, said Musa Mabesa, the GEPF’s principal chief executive. While deals initiated before it ended can be completed, new ones can’t be concluded, he said.
The mandate lapsed following a government inquiry into governance shortcomings and alleged corruption at the PIC, a R2.34 trillion fund manager that reports to the state. The GEPF is now negotiating a new agreement with more stringent requirements over “consequence management”, among other things, Mabesa said.
“At the moment there are no new investments,” Mabesa said on a virtual presentation on Thursday. “We are finding each other.”
Read more @Fin 24
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