Des was a R95 billion hit to pensions

 11 May, 2016 

David Douglas Des van Rooyen (L) raises his hand as he is sworn-in by Justice minister Sisi Khampepe. File photo
Image by: GIANLUIGI GUERCIA / AFP

The pensions of government employees lost R95-billion in the two days last December that Des van Rooyen was finance minister, the CEO of the Public Investment Corporation, Dan Matjila, told parliament yesterday.

Matjila, who was briefing parliament's portfolio committee on finance, said that the investments had "significantly recovered" since the incident.

Across its entire portfolio the losses amounted to R99-billion.

The disclosure was in response to a question from DA MP David Maynier, who also quizzed Matjila on whether the asset manager was invested in any Gupta-related companies.

Maynier also asked for details on the funding arrangements the PIC had made with Sekunjalo for the purchase of Independent Newspapers.

Matjila said that "to the best of our knowledge the PIC has not made any direct investment in a Gupta-owned entity".

But both he and Deputy Finance Minister Mcebisi Jonas, who is the chairman of the PIC, acknowledged that they had answered carefully in case information of which they were unaware emerged.

The PIC had committed R888-million for the acquisition of Independent Newspapers two years ago, of which 70% sat on the balance sheet of Independent Newspapers and about 30% was a loan to Sekunjalo.

Neither sum required repayment at this stage as they had another three years to run before they had to be serviced.

- ©TMG Digital/BDlive