PIC defends its support for Concor

Detailed summary

Despite the allegedly chequered ethical and governance history of the in-business-rescue construction company’s former majority shareholder.

The Public Investment Corporation (PIC), which manages the Government Employees Pension Fund (GEPF) and Unemployment Insurance Fund (UIF), has defended its financial support for construction company Concor, which entered business rescue last month.

This is despite allegations of a chequered ethical and governance history involving Concor’s former majority shareholder, the Southern Palace Group (SPG).

Moneyweb asked the PIC to provide the rationale and justification for its decision to provide further liquidity to Concor prior to 2025 and for its decision in May 2025 to convert about R1.18 billion of shareholder debt into preference equity, which resulted in the GEPF and UIF becoming Concor’s effective shareholders.

PIC spokesperson Adrian Lackay said the corporation believes it is necessary to address a number of misconstructions regarding these issues and Concor.

Lackay said the initial investment by the PIC on behalf of the GEPF in 2017 was to acquire a 25% shareholding in Concor.

He stressed that the PIC did not fund SPG to acquire a majority shareholding in Concor.

“The PIC invested alongside the SPG in Concor, through a R262 million loan facility to Concor and a R13 million equity subscription, on behalf of the GEPF,” he said.

He said the PIC was particularly concerned about the potential impact of large-scale job losses and the risk that business rescue proceedings could pose to major infrastructure projects undertaken by the South African National Roads Agency (Sanral) and Eskom.

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