The Federation of Unions of SA (Fedusa) expressed concern on Thursday at the ”apparent rushing and fast tracking” of the draft Public Investment Bill currently before Parliament, and hinted at possible legal action.
Fedusa, which represents more than 280 000 workers in the public sector alone, challenged Finance Minister Trevor Manuel to ”be transparent” and support good governance regarding the Bill.
”This Bill will have a direct effect on workers in this sector, as they are all contributing members to the Government Employees Pension Fund (GEPF),” the federation said in a statement.
”Fedusa is concerned with the apparent rushing … of this legislation … and has called for a postponement of the Bill … to allow further engagement with stakeholders.”
In its earlier submission on the bill, Fedusa questioned the purpose of corporatising the Public Investment Commission (PIC), how this would benefit members of the GEPF, and why the soon-to-be-appointed GEPF trustees were not involved in this process.
”Of grave concern to Fedusa is that the Bill in its current form curtails the capacity of the trustees to fulfill their fiduciary duties and may make them liable to challenges from members,” the federation said.
Currently, all returns on investments with the PIC were for the benefit of the GEPF.
It was now proposed that the corporation be placed in a position to pay dividends to the state as shareholder.
”It is furthermore foreseen that the current Bill will place the minister in the realm of a serious conflict of interests stemming from the fact that the envisaged Public Investment Corporation will also be an entity that will function under the minister’s direct jurisdiction.”
In the same statement, Fedusa general secretary Chez Milani said: ”We are keeping our options open on this matter, and have not excluded the possibility of legal action should the process of this Bill not be reviewed.” – Sapa