DA Bill Seeks to Shield South Africa’s Pension Fund From Politics

The Democratic Alliance (DA) in South Africa introduced a draft bill to restructure the Public Investment Corporation (PIC) board, aiming to eliminate political interference in the management of over R3-trillion in assets. The move follows repeated governance failures and scandals at the PIC, which manages funds for government employees, and stems from unimplemented recommendations from a 2020 commission of inquiry.

The DA’s Pension Protection Bill would prevent politicians from serving as PIC directors and establish an independent selection panel for board members based on merit. Currently, the deputy finance minister chairs the board, a practice the commission deemed problematic.

The bill would also shift appointment power of executive directors, including the CEO, from the minister to the board itself. The DA believes the PIC has become vulnerable to political capture, leading to poor investment decisions and risks to public servants’ retirement savings.

While Finance Minister Enoch Godongwana has acknowledged the need for legislative changes, he has yet to act. The DA hopes to pass the bill in parliament, now that the ANC no longer holds a majority, and is seeking legal review before formally tabling it.