Patrick Dlamini, The Public Investment Corporation has suspended its CEO and CIO amid a governance crisis linked to a controversial investment in Lanseria Airport, raising concerns over its management of pension funds.
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The Public Investment Corporation (PIC), South Africa’s biggest asset manager, has put its chief executive Patrick Dlamini on precautionary suspension amid growing concern and uncertainty about governance at the institution.
The PIC’s board also confirmed on Tuesday that following a resolution of the Government Employees Pension Fund (GEPF), the state-owned PIC’s biggest client, the board resolved that August Van Heerden would cease serving as Acting Chief Investment Officer of the PIC - the PIC was at pains to stress that Van Heerden was not suspended. The PIC had held a board meeting on Monday.
“The board believes it is necessary to provide Mr. Dlamini sufficient space and time to respond to allegations of impropriety against him that were submitted to the Board in a whistleblower report last month. The precautionary suspension is intended to ensure a fair, objective and independent investigation into these allegations,” the PIC said in a statement.
The PIC oversees R3.6 trillion in government pension and social funds.
Nine of the PIC’s 11 board members voted in favour of the decision for the precautionary suspension. The PIC is currently embroiled in a multi-layered governance crisis stemming from a R333 million investment and loan granted to BEE shareholder Acapulco Trade & Invest to acquire a 25% stake in Lanseria Airport.
Corporate governance failures have dogged the PIC for a long time - there are regular reports of failed investments in unlisted companies in particular, while a Commission of Enquiry into the PIC - the Mpati Commission - appointed in 2018, revealed serious governance and ethical failures.
The Commission exposed political capture and conflicts of interest in unlisted investments in particular, weak governance, poor accountability, the manipulation of valuations, and the need for independent oversight, transparent reporting, and ethical leadership. The PIC vowed to transform, but it continues to be stalked by fresh allegations of irregularities.
The latest suspensions followed weeks of new developments surrounding the PIC’s handling of the Lanseria Airport matter, which was funded by the PIC more than a decade ago.
These include a whistleblower complaint against Dlamini, the publication of a confidential PwC forensic report, PIC chairperson and deputy Finance Minister David Masondo’s referral of aspects of the matter to the Special Investigating Unit (SIU), and businessman Kagiso Matjila’s R900m High Court damages claim against Dlamini over the appointment of PwC to investigate the Lanseria dispute.
The GEPF is Africa’s largest pension fund. The PIC’s other most recent woes include disclosures surrounding the failure of its unlisted investments portfolio.
The PIC told Parliamentarians earlier this year that it had committed about R67 billion to some 150 unlisted investments since 2003, with at least 78 of those reporting partial or total losses. Finance Minister Enoch Godongwana recently met the PIC board as concerns have begun to mount about the Lanseria contract and the performance of the unlisted investments.
The PIC said the Dlamini suspension did not constitute a finding nor was it a pronouncement of any wrongdoing on the part of Dlamini. IArrangements were being finalised for an Acting CEO position.
In the meantime, to ensure “stability and optimum management of PIC investment decisions”, the board said Leon Smit, the current Head for Fixed Income in Listed Investments for the PIC, will be appointed as Acting CIO.
Smit has more than three decades of experience in fixed income, treasury management, and financial markets, the PIC said.
He joined the PIC in August 2000 and currently leads the management of listed fixed income investments and cash flows in accordance with client mandates. He is responsible for overseeing the PIC's listed fixed income dealing activities on the domestic market and driving investment performance while maintaining prudent risk management.
Dlamini became CEO from July 1, 2025. He had nearly 30 years of senior management experience, including a role as CEO of the DBSA.
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