PIC wants its Eskom bonds converted into equity

The Public Investment Corporation (PIC) has submitted a proposal to government, seeking to convert its bonds in Eskom into equity.

PIC chairperson Reuel Khoza says the state asset manager had discussed the proposal with the Government Employees Pension Fund (GEPF) and the two had principally agreed to the proposal.

Khoza says the PIC’s holdings in Eskom bonds amount to around R90 billion, out of Eskom’s total debt of around R450 billion.

Yesterday, Finance Minister Tito Mboweni announced that Cabinet had approved the appointment of a new CEO for the PIC.

Abel Sithole is currently the Principal Executive Officer of the Government Employees Pension Fund.

Mboweni has wished him well in his appointment.

In the video below, PIC chairperson Reuel Khoza is upbeat Sithole has what it takes to restore the organisation’s credibility:

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Sithole will serve a five-year-term at the corporation.

He will be taking over from Vuyani Hako, who has been acting in the position.

“We thank Mr Hako for his contribution at the PIC, steering the organisation through very difficult times. We also congratulate Mr Sithole on his appointment as CEO and wish him well in leading the organisation and in restoring its integrity,” says Mboweni.

Sithole is currently the Principal Executive Officer of the Government Employees Pension Fund (GEPF) and the Commissioner of the Financial Sector Conduct Authority (FSCA).

Before joining the GEPF in 2015, he was a Deputy Executive Director at the Institute of Futures Research, University of Stellenbosch Business School. He also has a number of non-executive roles.

It is hoped that he will stabilise the state-owned investment manager and be the glue between the board of the PIC and the board of the GEPF.

Sithole is the first permanent PIC CEO in almost two years.