South African Deputy Finance Minister David Masondo, who serves as the chairman of the Public Investment Corporation (PIC), is reportedly facing potential removal from his position. This development comes as Finance Minister Enoch Godongwana has issued a notice threatening to dissolve the PIC's board and hold a meeting on July 27 to discuss the matter. The crisis at the PIC, which manages $197 billion (R3.7 trillion) in assets, most of which belong to civil servants, has seen six non-executive directors resign within the past week, leaving the 11-member board with only five members.
The resignations follow a decision by the board on July 10 to suspend CEO Patrick Dlamini due to a whistleblower complaint, a move that Godongwana reportedly opposed. Sources indicate that Godongwana subsequently pressured board members to reverse the suspension, warning of the board's dissolution if they did not comply. The situation has been exacerbated by a dispute over the appointment of three new chief investment officers, a plan intended to sharpen oversight but which has instead led to significant internal conflict, described by one board member as when "all hell broke loose."
The Financial Sector Conduct Authority (FSCA) has also expressed concerns regarding the PIC's governance and leadership stability, launching an investigation. The FSCA had previously requested whistleblower reports pertinent to the Dlamini matter but, according to commissioner Unathi Kamlana, these were not provided despite assurances. The Mpati Commission's recommendations for reform, particularly concerning political interference, have largely gone unimplemented, with critics arguing that adhering to these recommendations would have prevented the current crisis. The Democratic Alliance (DA) has proposed a new bill aimed at depoliticizing the PIC's board appointments, seeking to remove government officials, including the Finance Minister, from direct involvement in director selections.
