Finance Minister Enoch Godongwana has thanked his deputy Dr Davd Masondo for resigning his role as PIC chairman in the interests of good governance, amid a growing corporate governance crisis at the institution.
Image: GCIS
Minister of Finance Enoch Godongwana on Friday commended his deputy minister Dr David Masondo for his decision to step aside as PIC chairman, as both “good and necessary, given the governance challenges confronting the institution.”
“The Minister thanks Dr Masondo for his service and commends his decision to step aside as both good and necessary, given the governance challenges confronting the institution,” the Minister said Friday afternoon in a statement.
The PIC, the state-owned asset manager that manages over R3.6 trillion, mainly of government employee pension funds, has been rocked by controversy since its chief executive Patrick Dlamini was put on precautionary suspension last week amid growing uncertainty about governance at the institution, and so that Dlamini can face allegations made against him by a whistleblower in relation to R411 million of BEE finance provided to a company called Acapulco for a stake in Lanseria Airport, over a decade ago.
Since then, five board members have resigned from the institution, and on late Thursday night, Masondo also offered his resignation. Godongwana had apparently called for a PIC board meeting on Monday to address the issues.
Minister Godongwana said in the statement on Friday however he would, in consultation with the Cabinet, appoint a new Board as stipulated in Section 6 (1) of the PIC Act.
“The Minister underscores that the PIC, as a state-owned asset manager, carries a dual mandate of delivering commercial performance while safeguarding public interest. It also plays a vital role in the economy, and any instability in the institution poses a systemic risk to the economy,” he said.
Godongwana said he would provide further detailed information to the public and all stakeholders once consultations were completed, and a new board was appointed.
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