The EFF has requested an urgent meeting of the Standing Committee on Finance following the suspension of Patrick Dlamini, the CEO of the Public Investment Corporation (PIC).
Image: Oupa Mokoena / Independent Newspapers
The EFF says the level of leadership instability at the top of the country’s largest asset manager, the Public Investment Corporation (PIC), cannot be unexamined.
The party wants clarity on how the PIC Chief Executive Officer, Patrick Dlamini, was suspended.
This was after the PIC board on Monday announced the precautionary suspension of Dlamini, after the majority of the board members voted in favour of his immediate suspension.
Chief Financial Officer, Batandwa Damayi, has since been announced as acting CEO.
This followed a whistle-blower report submitted in June 2026, which accused Dlamini of unethical conduct and governance failures.
The whistle-blower accused Dlamini of overstepping his powers by commissioning a PricewaterhouseCoopers (PwC) forensic investigation into a troubled R411 million Lanseria Airport investment transaction without the required board approval.
The whistle-blower report raised questions regarding potential conflicts of interest linked to his past ties with related business companies.
Dlamini also faces allegations regarding the appointment of acting Chief Investment Officer August van Heerden without obtaining explicit consent from the Government Employees Pension Fund (GEPF).
The EFF, which requested an urgent meeting of the Parliament Standing Committee on Finance (SCOF), said the manner and timing of Dlamini’s suspension raise serious questions.
The suspension occurred right after a clash within the National Treasury.
Finance Minister Enoch Godongwana had previously stepped in to demand a formal, process-oriented review by internal auditors rather than an immediate suspension. However, the PIC board, chaired by Deputy Finance Minister David Masondo, bypassed this and enforced the suspension anyway, exposing a significant political rift.
It also coincided with a R900 million High Court lawsuit filed against Dlamini by businessman Kagiso Matjila and his company, Acapulco Trade & Invest 164, as well as Masondo’s referral of the underlying Lanseria Airport deal to the Special Investigating Unit (SIU).
Matjila’s claim alleges defamation, injurious falsehood, and unlawful interference with contractual relations stemming from Dlamini's decision to hire PwC to investigate the Lanseria matter after a final, binding arbitration had already been concluded.
Masondo’s decision to refer the matter to the SIU followed legal advice regarding the PwC forensic report, which found misstatements in the debt balance calculations that underpinned the original arbitration award.
In the letter, signed by EFF’s Treasurer General Omphile Maotwe, the party said it wants clarity on the process followed and whether this was fair and independent or influenced by ulterior motives.
“This level of leadership instability, at the top of the country’s largest asset manager, cannot be unexamined. The PIC is central to our economy. It also manages the life savings of public servants through the GEPF. Given this responsibility, we are extremely worried about the current instability at the PIC,” read the letter.
The party said the PIC’s assets, especially its unlisted assets, should be used to allocate capital in a manner that industrialises South Africa, rather than simply supporting financialisation through the JSE without creating new industries or sectors.
It added that these latest developments appear linked to resistance against this shift in direction.
The party suggested that these developments may represent a deliberate effort to destabilise and corrupt the PIC, asserting that incompetent senior managers may exacerbate the situation.
“We therefore call for an urgent meeting of the Standing Committee on Finance. The meeting must be held in person. The following must attend: the PIC board, the Minister of Finance, PIC senior management, and the Financial Sector Conduct Authority (FSCA),” stated the letter.
SCOF Chairperson Dr Joseph Maswanganyi said he will conduct interviews after the committee meets with the PIC on August 4.
Neither the PIC nor the Treasury responded to questions by deadline.
Following the suspension of Dlamini, the FSCA launched a formal investigation into the PIC under Section 135 of the Financial Sector Regulation Act.
The regulatory probe targets mounting concerns regarding governance, leadership stability, transparency, and market integrity at Africa's largest state-owned asset manager.
This announcement saw two non-executive directors resigning from the PIC board, citing severe governance and leadership concerns.
Meanwhile, civil society organisation, Public Interest, said the FSCA’s decision to investigate the PIC reflects the seriousness of the issues at hand, while the resignation of board members further underscores the need for transparent, credible, and stable governance.
The organisation, which called for an expeditious and independent investigation, said the governance reforms introduced following the Mpati Commission are now being tested.
“Their effectiveness will ultimately be measured not by policy documents, but by the transparency, independence, and accountability demonstrated in responding to these developments.”
Cape Times