The bruising loss could have been minimised if the Public Investment Corporation (PIC) hadn't sold its derivative insurance structure that protected it against a collapse in the value of Steinhoff shares. The structure was linked to a R9.35bn loan extended by the PIC to Lancaster Group, a BEE investment vehicle, to buy Steinhoff shares.
By the end of its 2019 financial year, the Government Employees Pension Fund (GEPF), which is the biggest source of funds for the Public Investment Corporation (PIC), would have been hit with impairments of nearly R12-billion for its exposure to troubled retailer Steinhoff.
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