The Financial Sector Conduct Authority (FSCA) says it will investigate serious concerns raised about the governance of the Public Investment Corporation, which manages some R3.6 trillion of government employee pension savings.
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The Financial Sector Conduct Authority (FSCA) said it will conduct an investigation into the Public Investment Corporation (PIC) after the manager of the government employee pension funds suspended its CEO, Patrick Dlamini, as a “precaution”, following a whistleblower report.
The FSCA said Wednesday it has “become increasingly concerned by recent developments at the PIC, particularly those relating to governance, leadership stability, transparency, and the potential impact of these developments on the integrity and confidence in one of South Africa’s important financial institutions.”
The FSCA said in a statement the PIC occupies a “unique and critically important” position within South Africa’s financial system.
“As the country’s largest asset manager and custodian of substantial public sector savings, it bears heightened responsibilities to maintain the highest standards of governance, integrity, accountability and conduct. Events over recent months raise serious questions as to whether these standards are being consistently upheld,” the FSCA said.
“The FSCA takes note of the developments at the PIC and the allegations made in recent media articles concerning whistleblower reports and the suspension of its chief executive officer. Consequently, the FSCA has decided to conduct an investigation…” the FSCA said.
The investigation follows widespread concern expressed this week by trade unions, civic and other organisations, following the PIC’s shock decision to suspend its CEO, Patrick Dlamini, as a “precautionary” measure, to give him time to respond to allegations of impropriety against him that were submitted to the PIC board in a whistleblower report last month.
Governance at the PIC is currently mired in a range of issues, including the PIC’s handling of an investment into Lanseria Airport it made more than a decade ago, a PwC forensic investigation that was requested by Dlamini, 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 R900 million High Court damages claim against Dlamini over the appointment of PwC to investigate the Lanseria dispute, after a final arbitration award had already been paid.
Meanwhile, the PIC board said they have furnished the FSCA with the information and documentation it requested regarding the whistleblower report and the associated governance process.
The PIC appointed its Chief Financial Officer, Batandwa Damoyi, as Acting CEO with immediate effect, following the precautionary suspension of Dlamini.
The PIC board said that institutions such as the FSCA and the PIC have a shared responsibility to safeguard the retirement savings of millions of South Africans through sound governance, accountability and transparency. The board said that since its appointment, the previous and current board had prioritised strengthening governance and implementing the recommendations of the Mpati Commission.
In answering parliamentary questions in 2024 and 2025, Finance Minister Enoch Godongwana, had said: “The PIC has completed the implementation of the recommendations of the Mpati Commission Report into allegations of impropriety at the PIC, which were aimed at addressing the governance, operational and ethical deficiencies within the entity which were identified by the Commission.” Godongwana further stated, “The implementation of the recommendations has rectified the deficiencies identified by the Commission.”
The board said that whilst challenges remain, the PIC has made significant progress in strengthening the corporation’s governance framework and oversight processes.
“The board remains fully committed to cooperating with all regulators and ensuring that governance matters are addressed through independent, credible and transparent processes,” it said.
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