Deputy Finance Minister David Masondo on Thursday resigned as chairperson of the Public Investment Corporation (PIC) board.
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Deputy Finance Minister David Masondo has resigned as chairperson of the Public Investment Corporation (PIC) board, saying he was stepping down to protect the stability of the state asset manager and maintain confidence in the institution that oversees about R3.6 trillion in assets, primarily on behalf of government employees.
Masondo announced his resignation late on Thursday night following a turbulent period at the PIC that has seen a string of board resignations, the precautionary suspension of CEO Patrick Dlamini, and growing scrutiny over governance issues linked to the Acapulco black economic empowerment (BEE) financing transaction involving Lanseria Airport.
In a statement, Masondo said his decision was guided by the interests of the country and the institution rather than personal considerations.
"I do so in the interests of the Republic of South Africa, the continued stability of the PIC, and the confidence of the millions of South Africans whose savings are entrusted to this institution," Masondo said.
He said the Finance Minister Enoch Godongwana had acknowledged that he had acted with integrity and in good faith while carrying out his duties as board chair.
"Throughout my tenure, I sought to discharge my fiduciary responsibilities without fear or favour. In this instance, my actions were guided by the imperative to protect and safeguard the funds entrusted to the PIC on behalf of South Africa's workers and their beneficiaries," he said.
Masondo's departure comes amid an escalating governance crisis at the country's largest asset manager.
The PIC placed Dlamini on precautionary suspension last week to allow investigations into allegations contained in a whistleblower report relating to R411 million in BEE financing provided to Acapulco to acquire a 25% stake in Lanseria Airport more than a decade ago, as well as a subsequent arbitration award linked to the transaction.
The controversy has triggered an exodus from the board. Four non-executive directors resigned this week after two others stepped down days earlier, leaving Masondo as one of the remaining directors.
Business Report understands that the PIC board is expected to meet on Monday to consider further developments, including a possible shareholder vote on the removal of the remaining non-executive directors.
Godongwana has also indicated that he is considering measures aimed at restoring stability at the PIC.
In a response to Business Report earlier this week, Godongwana's office said the minister had received communication from the board and would announce any interventions at an appropriate time.
"The Minister has noted and received communication from the PIC Board and will, at an appropriate time, provide further details on the measures he is contemplating as the PIC's shareholder. The Minister will not be commenting further on issues at the PIC in public," his office said.
Despite stepping down, Masondo defended the work of the outgoing board, saying it had acted collectively, relied on legal advice and adhered to good governance principles.
He said the board had advanced the implementation of the recommendations of the Mpati Commission of Inquiry, strengthened governance systems and institutional controls, and continued supporting investment and economic development.
"While I believe the Board discharged its responsibilities faithfully, leadership requires placing the institution above oneself. It is therefore prudent that I step aside to avoid any uncertainty or distraction that could affect the stability of the PIC or undermine confidence in its work," he said.
Masondo also urged that investigations into matters inherited by the board should continue despite its resignation.
He specifically referred to the whistleblower report, allegations against Dlamini, the Acapulco matter that he referred to the Special Investigating Unit (SIU), and other governance issues.
"I hope that the outstanding matters the previous Board was dealing with, including the whistleblower report, the allegations against the CEO, the Acapulco matter, which I referred to the SIU, and other related issues, will be thoroughly investigated and appropriately addressed, rather than being swept under the carpet," Masondo said.
He added that some of these matters are due to be heard by the High Court and said the judicial process should be allowed to proceed unhindered.
Masondo concluded by expressing confidence in the PIC's future, saying he believed the institution would continue to safeguard the retirement savings of South Africa's public servants while supporting long-term economic development and investment.
BUSINESS REPORT