The PIC and former chief investment officer Kabelo Rikhotso reached a mutual agreement to terminate their employment relationship on an amicable basis earlier this month after he was placed on suspension nearly six months ago.
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The Public Investment Corporation (PIC) has defended the departure of its chief investment officer (CIO), Kabelo Rikhotso, insisting the exit followed “normal commercial terms” and did not involve any performance incentives.
This comes as parliamentary scrutiny intensifies over governance and accountability at the asset manager. The PIC and Rikhotso reached a mutual agreement to terminate their employment relationship on an amicable basis earlier this month after he was placed on suspension nearly six months ago.
Speaking during a briefing to Parliament’s Standing Committee on Finance, PIC CEO Patrick Dlamini confirmed that the corporation and the CIO had “mutually agreed to part ways,” stressing that the separation was handled within standard contractual frameworks.
Dlamini said the agreement excluded both short- and long-term incentives, addressing concerns raised by MPs about so-called “golden handshakes” often associated with senior executive exits in state institutions.
“This mutual separation did not include any incentives… it focused on certain months within a 12-month period and any unpaid benefits due,” Dlamini told the committee.
The clarification came after committee member Dr Mark Burke pressed the PIC for specifics, questioning whether the departure would ultimately reflect as a costly payout in the corporation’s financial statements.
Burke’s line of questioning reflects broader concerns about accountability, particularly in light of past controversies involving executive exits in public entities.
The CIO’s departure comes at a critical time for the PIC, which is grappling with audit findings related to governance, compliance, and investment decisions. While the corporation has maintained clean audit outcomes on its financial statements for three consecutive years, issues around investment processes and oversight have drawn increasing attention.
Dlamini indicated that the PIC has already moved to fill the leadership gap, confirming that the CIO position has been advertised as part of efforts to strengthen capacity within the organisation.
He said reinforcing leadership in key investment functions is essential as the PIC seeks to improve oversight and performance, particularly in its unlisted investments portfolio.
Dlamini also acknowledged that disciplinary processes involving other senior officials are still underway, including a case involving the acting head of unlisted investments. These proceedings, he said, are continuing and will follow due process.
The CIO’s exit is taking place against the backdrop of heightened scrutiny of the PIC’s investment decisions, including problematic exposures such as Daybreak Foods and Enable Capital, both of which have been flagged by the Auditor-General for governance failures and insufficient due diligence.
The issue underscores a broader challenge facing the PIC: balancing leadership stability with the need for accountability in an institution responsible for managing more than R3 trillion in public funds.
Parliamentarians have raised concerns that weaknesses in internal controls and enforcement — rather than policy gaps — may be at the heart of recurring compliance failures. This has placed additional pressure on the PIC’s leadership to demonstrate stronger consequence management and accountability at senior levels.
Dlamini reiterated that the organisation is committed to improving governance and ensuring that its investment decisions protect the funds it manages on behalf of public sector clients, including the Government Employees Pension Fund.
Further details of the CIO’s exit package are expected to be disclosed in the PIC’s upcoming financial statements, which MPs indicated they will scrutinise closely as part of ongoing oversight.
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