Deputy Minister in the Presidency for Planning, Monitoring and Evaluation Seiso Mohai has been appointed to lead the troubled Public Investment Corporation (PIC).
Image: Facebook/Sesio Mohai
The appointment of a new board for the Public Investment Corporation (PIC) has renewed focus on the full implementation of the recommendations of the retired Judge Lex Mpati Commission of Inquiry.
The government, labour and opposition parties on Thursday all called for governance reforms to be accelerated at South Africa's largest asset manager.
Managing more than R3.6 trillion on behalf of the Government Employees Pension Fund, the Unemployment Insurance Fund and other public sector clients, the PIC remains one of the country's most strategically important financial institutions.
Cabinet on Thursday approved the appointment of Deputy Minister in the Presidency for Planning, Monitoring and Evaluation Seiso Mohai as chairperson of the PIC board, together with seven other non-executive directors, in a move aimed at stabilising the institution following the resignation of the previous board.
Announcing the decision during a post-Cabinet media briefing, Minister in the Presidency Khumbudzo Ntshavheni said the appointments were intended to address governance challenges at the corporation.
"The appointment is aimed at addressing current governance challenges. The Minister of Finance will continue to drive the reforms of the PIC as recommended by the Judge Mpati Commission in consultation with Cabinet," Ntshavheni said.
The 2020 Mpati Commission was appointed by President Cyril Ramaphosa to investigate impropriety in PIC investment decisions, the PIC's governance and operating model, whistleblower handling, alleged political interference, and possible personal gain by directors or staff.
Amongst others, the Mpati Commission exposed the PIC as a politically captured institution plagued by poor governance, weak accountability, and corruption, particularly within its unlisted investment portfolio.
It concluded that the PIC chairperson should be an independent, non-executive professional with expertise in pension funds, financial markets and governance.
The new board comprises Mohai, deputy chair of the DBSA, Patience Nqeto; fintech expert and GEPF board member, Lebogang Mokgabud; former Deputy National Director of Public Prosecutions, Advocate Gatlelane Ouma Rasethaba; CEO of Corrugated Packaging at Mondi, Vivien McMenamin; former senior vice president and chief financial officer of the African Development Bank, Bajabulile Swazi Tshabalala, highly accomplished chartered accountant and corporate executive, Itani Mafune; and National Treasury representative Moipone Ramoipone.
The appointments follow the resignation of all non-executive directors a week ago, leaving acting CEO Batandwa Damoyi and suspended CEO Patrick Dlamini as the corporation's remaining executive directors.
Damoyi said management was ready to work with the incoming board to restore confidence in the institution. She added that the corporation's immediate priority was to ensure a smooth transition.
"The PIC management team is ready to welcome new board members, and we are committed to work constructively with the board to rebuild public trust and provide assurance to all PIC clients that their retirement savings and social security funds continue to show robust growth," she said.
"The immediate priority is to ensure a seamless induction process for all new board members, so that the board can begin its oversight duties without delay."
Calls for the implementation of the Mpati Commission's recommendations grew louder following the appointment of the new board.
The Democratic Alliance welcomed government's renewed commitment to implementing the commission's findings but questioned Mohai's appointment as board chair.
"The DA welcomes the overdue commitment announced today to implement the recommendations of the Mpati Commission," said DA leader Geordin Hill-Lewis.
He called on government to move quickly from commitments to implementation.
"The President and the Minister of Finance must now publish a firm timeline for finalising the necessary legislative amendments and implementing the commission's recommendations in full."
The new board now faces the task of restoring governance and public confidence while overseeing the implementation of the far-reaching reforms proposed by the Mpati Commission to strengthen accountability, transparency and the long-term protection of public servants' retirement savings.
The Congress of South African Trade Unions (Cosatu) said the legislation, introduced following the Mpati Commission's recommendations, strengthened anti-corruption safeguards and transparency requirements at the corporation.
"We urge the President to task the Special Investigations Unit, the Auditor-General and the Hawks to institute a comprehensive investigation of all PIC investments to ensure the cancer of corruption and state capture is fully exorcised from the PIC," said Matthew Parks, Cosatu parliamentary coordinator.
Cosatu further called for full compliance with the PIC Act's transparency provisions requiring all listed and unlisted investments to be publicly disclosed and reported annually to Parliament, National Treasury and depositors.
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