South Africa's Public Investment Corporation (PIC), which manages over R3 trillion (approximately $219 billion) in assets, primarily for civil servants' pensions, is facing a deepening governance crisis. The latest developments include the resignations of four non-executive directors: Lerato Makwetla, Lindy Bodewig, Mpumelo Maseko, and Dorothy Kobe. These resignations followed a notice from Finance Minister Enoch Godongwana threatening to dissolve the board, bringing the total number of non-executive director resignations to six, after Thabi Nkosi and Nosiphiwo Balfour had already departed on July 15. The remaining board members include Deputy Finance Minister David Masondo, who chairs the PIC, and representatives from various public sector unions.
The crisis intensified after CEO Patrick Dlamini was placed on precautionary suspension on July 13, following allegations of impropriety raised in a whistleblower report. This suspension occurred after the board voted nine to two in favor of the action. The Finance Minister and Deputy Finance Minister are reportedly at odds over Dlamini's suspension, an investigation he ordered into a R411 million settlement with a company called Acapulco, and a subsequent whistleblower tip-off. The Financial Sector Conduct Authority has also launched an investigation into the PIC's governance.
The board's integrity has been further compromised by the resignations, with key positions such as the chairs of listed investments, unlisted subcommittees, and risk subcommittees now vacant, and no members with investment experience remaining. A major point of contention has been the decision to split the single Chief Investment Officer role into three, responsible for unlisted investments, listed investments, and property/infrastructure, respectively. Minister Godongwana questioned this move, citing that the PIC's memorandum of incorporation refers to only one CIO. The continuous turmoil underscores ongoing governance challenges at Africa's largest asset manager, which has seen a revolving door of senior executives over the past decade.
