South Africa to Appoint New PIC Board

South Africa’s Finance Minister Enoch Godongwana has announced plans to appoint a new board for the Public Investment Corporation (PIC) following a series of resignations that have intensified concerns over governance at the state-owned asset manager.

Eight board members have resigned from the PIC, including Deputy Finance Minister David Masondo, who served as the board’s chairperson. Masondo’s resignation on Thursday was the latest in a wave of departures that has left the corporation without much of its leadership and prompted the government to begin the process of reconstituting the board.

The leadership shake-up comes as the PIC faces mounting scrutiny over its governance practices. Chief Executive Patrick Dlamini remains suspended while an investigation into allegations made by a whistleblower is ongoing. At the same time, South Africa’s financial regulator has opened a separate investigation into governance issues at the institution, adding to pressure for reforms.

The Public Investment Corporation is one of Africa’s largest asset managers, overseeing more than 3 trillion rand (about $178.6 billion) in assets on behalf of public sector clients. Its largest client is the Government Employees Pension Fund, and it is also the biggest investor on the Johannesburg Stock Exchange, making its stability important to South Africa’s financial system.

The institution has faced governance challenges for more than a decade. Many of the current concerns reflect weaknesses in oversight and accountability that were highlighted by a judicial commission of inquiry in 2020. The finance ministry has not announced when the new board appointments will be finalised.

SOURCE: Reuters