PIC denies investment in Edcon was the result of political pressure

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Asset manager says R1.2bn contribution to the struggling retailer’s recapitalisation helped save 140,000 jobs and was commercially driven

The Public Investment Corporation , which is the largest investor in SA, has responded to suggestions that it invested in Edcon because of political pressure, saying that it was in the national interest to contribute to the turnaround of the struggling retailer.

Deon Botha, head of corporate affairs at the PIC, said the state-owned asset manager, which oversees more than R2-trillion in government employees’ pension money and other government funds, had followed the necessary procedures. “In making the investment decision, the PIC subjected the transaction to the PIC’s rigorous internal investment processes and did not succumb to any external political or union pressure as suggested by some media houses,” he said.

However, Edcon CEO Grant Pattison said on Thursday unions had played an important role in getting the PIC on board. He also said the recapitalisation programme had been a success.

 

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