OPINIONISTA: The Public Investment Corporation and the philosophy of extraction

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Honestly, I’ve just had it with the Public Investment Corporation. Last week, the state-owned entity lashed out at Absa after the bank appointed a white CEO, Arrie Rautenbach.

Obviously, it’s easy to be misunderstood here, so allow me to explain as carefully as I can what I understand and don’t understand about the Public Investment Corporation’s action.

The PIC announced it was “downright disappointed” by the appointment of Rautenbach, but apparently the need for the bank to appoint someone trusted, internal and respected within the organisation in the context of these successive fiascos was all subsumed by the mere fact of his race. This is not a big underperformance, and that tells you something about the PIC; it’s so huge, it’s like a forced index fund. In fact, I’m not sure why it doesn’t just investment in an index fund; when you are that large, it’s almost impossible to outperform the market, or underperform it, and you would save a huge amount on fees.

 

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Big business needs to grow a pair and fight against transformation- the only factor should be merit, otherwise the unemployment rate will just continue as it is.

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