PIC strategy for SOEs

State-owned enterprises 'need to be supported, but not at all costs' - Sithole.

- Roy Cokayne

The Public Investment Corporation (PIC), the government-owned asset manager that manages its social security funds and is the biggest investor in the JSE, has devised what it calls a State-Owned Enterprise Strategy to support entities such as Eskom and Transnet.

PIC chief investment officer Kabelo Rikhotso said on Wednesday that the strategy covers when and under what conditions the PIC supports state-owned enterprises (SOEs).

"That strategy was shared with our clients and our board and we are quite happy," he said at a briefing on the release of the PIC'S latest annual report.

PIC CEO Abel Sithole said SOEs need to be supported but "not at all costs", there needs to be a strong case and proposition and the SOEs need to be properly managed and governed.

Municipal investments

Sithole said the PIC is a fund, which means it can only provide funding to entities that can assist municipalities.