In 2013, the PIC provided around R333 million in funding for Acapulco to acquire a 25% stake in Lanseria International Airport. However, Acapulco later defaulted on repayments. Allegations surrounding the governance of the investment have resurfaced.
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The Public Investment Corporation (PIC), manager of some R3.6 trillion of public servant pension savings, has suspended its CEO, yet another sign that there is far more to the continuing allegations of corruption and maladministration at the institution than meets the eye.
The PIC announced late Monday, after an “emergency board meeting,” that they had placed their chief executive Patrick Dlamini on suspension. It says the suspension is “precautionary” while a more detailed investigation into certain allegations made against Dlamini in a whistleblower report is investigated in depth.
For many trade unions and civic organisations, the suspension vindicates calls made by them over many years that the PIC is being treated as a “piggy bank” by certain business and political interests, and that a thorough investigation into the governance of the PIC is warranted.
For instance, the Public Servants Association (PSA) yesterday reiterated its previous calls on the Minister of Finance, made over a number of years, to urgently review the investment mandate governing the PIC.
“While developmental investments remain important, they should never compromise the primary fiduciary responsibility of safeguarding members’ pension assets,” a PSA spokesperson told Business Report.
The trade union federation Cosatu said they were encouraged by governance changes at the PIC in recent years, but added that for far too long the PIC was treated like a private piggy bank by elements in the state, political and business circles, at the expense of the ordinary workers and pensioners to whom these monies belong.
The Democratic Alliance (DA) has called for urgent parliamentary intervention and has warned that South Africans' pension savings could be placed at risk if governance concerns are not addressed.
DA spokesperson on finance Dr Mark Burke said Parliament had failed to exercise adequate oversight of one of the country's most important financial institutions.
"The public has every right to be concerned. The ANC's David Masondo, PIC Chairperson and Deputy Finance Minister, faces his own whistleblower allegations and a tenure marked by failed investments. Then there's the five suspended executives in the last two years," Burke said.
Dlamini was suspended following allegations that were directed at him regarding a long-running dispute around a R333m investment by the PIC into Lanseria Airport and Harith General Partners, an infrastructure investment firm that invested into the airport, with the PIC as a major investor.
According to reports, the whistleblower complaint alleges that Dlamini failed to properly disclose or manage potential conflicts of interest involving Lanseria Airport Holdings and Harith General Partners.
Also, he allegedly did not adequately answer Parliament’s questions in December about his previous directorships in Lanseria-related entities, and his relationship with Harith founder Tshepo Mahloele.
Harith has featured in discussions surrounding the matter because it was part of the consortium that acquired Lanseria Airport in 2013 and also has historical links with several former PIC executives. These relationships have previously attracted public and parliamentary scrutiny, although they do not in themselves imply any wrongdoing.
During parliamentary proceedings in December 2025, according to published reports, Dlamini was questioned about the Lanseria dispute, the proposed review of the arbitration award and the valuation of the BEE stake.
Dlamini told MPs that the PIC would abandon its intended review of the arbitration award, while a letter that has since entered the public domain reportedly records that he also said the BEE stake had been overvalued by 400%.
Corporate governance failures have dogged the PIC for a long time - there are regular reports of its 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.
Billions of rand belonging to members of the Government Employees Pension Fund (GEPF) have been exposed to investments that have failed to deliver the expected returns, placing unnecessary risk on the retirement savings of more than 1.2 million public servants.
Parmi Natesan, CEO of the Institute of Directors South Africa (IoDSA), said a precautionary suspension should not be viewed as a finding of guilt, but it does raise important governance considerations.
"For an institution entrusted with managing significant public funds, the board should ensure continuity of leadership, effective delegation of authority, robust risk management and clear accountability. Equally important is maintaining stakeholder confidence by demonstrating that governance processes are followed objectively, fairly and without undue delay," said Natesan.