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PSA to discuss Steinhoff crisis with government

The Public Service Association (PSA) will meet with Public Investment Corporation (PIC) and the Government Employees Pension Fund (GEPF) over fraud allegations levelled against Steinhoff.

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The CEO of Steinhoff International Markus Jooste resigned with immediate effect on Tuesday amid an investigation into accounting irregularities at the company.


The PSA represents over 230 000 government employees. It’s estimated that the government pension fund has lost more than R12.5 billion of the money it has invested at Steinhoff.


PSA spokesperson Tahir Maepa says it is shocking that such a large amount of money could simply disappear.


"This is shocking that R12 billion of public servants money just evaporated into the air.”


Maepa believes there is a need for Finance Minister Malusi Gigaba to review the PIC's mandate.

"It is becoming apparent the minister needs to take a decision in terms of our demands so that he needs to review the MY of the PIC so that the union can get involved in making sure we safeguard the investments.”


Maepa says the investments made by PIC and how it is been run need to be probed in light of the fraud allegations.


He believes the PSA should be given an oversight role at the PIC.


The Johannesburg Stock Exchange (JSE) lost about R183 billion since allegations of fraud were levelled were first levelled against Steinhoff earlier this week.


Steinhoff has since released a statement clearing its Chief Financial Officer (CFO) Ben La Grange of any wrongdoing.


He will therefor remain in his position.


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