The UIF, whose R169bn portfolio is managed by the PIC, has failed to 'produce financial statements that account for the investee companies’ in which the PIC invests on its behalf. Image: Supplied

The Public Investment Corporation (PIC) has rejected suggestions that its dual mandate to provide a commercial return for its clients and its social mandate in law potentially contributed to it making losses in its unlisted portfolio.

PIC CEO Abel Sithole said on Wednesday the primary purpose of the PIC’s existence is that it must make a financial return and there is no confusion about that.

But Sithole said the law also provides that the PIC has a secondary mandate, which is the social issues that we need to address, such as transformation, the structure of the economy and dealing with historical issues of the country, which are codified in the amended PIC Act.

“We don’t believe there is a conflict between the two and our experience has been that it is possible that we provide both good commercial outcomes as well as good social outcomes,” he told Parliament’s Standing Committee on Public Accounts (Scopa) in a briefing on investments for the Unemployment Insurance Fund (UIF) and the Compensation Fund.