Crisis at South Africa’s largest pension fund manager

Finance Minister Enoch Godongwana said on Friday he would appoint a new board for the Public Investment Corporation (PIC) after a series of board resignations.

The Public Investment Corporation (PIC) is a South African state-owned asset management firm. It is the largest asset manager in Africa.

Its biggest client is South Africa’s Government Employees Pension Fund, and it is the largest investor on the Johannesburg Stock Exchange (JSE).

The PIC has faced governance challenges for more than a decade, and many of the issues now confronting the institution echo findings of a judicial inquiry.

In 2018, President Cyril Ramaphosa appointed the Judicial Commission of Inquiry into Allegations of Impropriety at the PIC, chaired by former SCA President Lex Mpati.

Its 2020 report revealed that the PIC had operated as a politically captured institution where governance was routinely bypassed.

Most of the worst abuses occurred in unlisted investments, handled under the Isibaya Fund.

Decision-makers bypassed internal risk controls, investment committees, and due diligence to approve high-risk deals for politically connected individuals or entities.

Despite post-Mpati reform attempts, the PIC continues to grapple with leadership instability and regulatory scrutiny.

PIC CEO Patrick Dlamini was placed on precautionary suspension following whistleblower allegations concerning governance lapses.

There were also allegations of conflicts of interest in management and of unauthorised investigations into legacy deals such as Lanseria Airport.

The Financial Sector Conduct Authority (FSCA) launched a formal investigation into the PIC over leadership stability, transparency, and governance concerns.

Board turnover remains high, with multiple non-executive directors resigning amid clashes over governance, executive oversight, and board composition.

Finance Minister Enoch Godongwana said on Friday he would appoint a new board for the PIC after a series of board resignations at the state-owned asset manager.

Eight board members, including Deputy Finance Minister David Masondo, who served as PIC board chair, have resigned.

The asset manager faces mounting scrutiny after Chief Executive Patrick Dlamini was suspended pending an investigation into allegations raised by a whistleblower.

Godongwana has called a general meeting of the PIC on Monday to vote on the removal of the remaining board members.

Reporting with Reuters