PIC hits back at UDM over ‘false and malicious’ claims about governance and investments

The Public Investment Corporation (PIC) on Tuesday hit back at allegations made by the United Democratic Movement (UDM), about the state of governance and the investments the PIC manages on behalf of its clients.

David Masondo, the PIC board chairperson, said in a statement on Tuesday that the PIC is preparing detailed submissions to the Presidency, Parliamentary Committees and other government agencies, to substantially repudiate the "false and malicious allegations".

"Since 29 October 2025, the UDM and its leader,Bantu Holomisa, have deliberately sought to mislead the public and important organs of state like the Speaker of the National Assembly, the Standing Committee on Public Accounts (Scopa), the Auditor-General and the Special Investigating Unit (SIU). This was done by clearly misrepresenting confidential, internal information about PIC transactions and governance processes, for nefarious and ulterior purposes," he said.

The PIC said it rejects the allegations by the UDM and Holomisa as "contemptuous" and will formally provide the Presidency, the Speaker and other organs of state with verified facts about investment decisions, corporate governance reforms and the actions undertaken by the PIC board to restore ethics, integrity, oversight and accountability in PIC business processes.

The board believes the PIC is financially sustainable, strategically positioned for growth, and committed to strengthening governance and accountability. With corrective measures underway, the Board is confident that any risks identified from historic investments will be effectively mitigated.

Masondo said Holomisa boldly states in his allegations that there has been continued looting, mismanagement and administrative bungling at the PIC and that R3.5 trillion worth of client assets are at risk.

"These statements are false, reckless, are intended to cause public alarm, and impugn the integrity of the PIC and its board," he said.

In a bid to reassure the public, the PIC said it has consistently grown the monies it invests on behalf of clients over the past 20 years – from R461 billion in 2005 to R3.049 trillion by March 31, 2025. The PIC reached another milestone when these assets, for the first time, broke through the R3.5trl  level by 30 September 2025.

The 2024/25 financial year recorded resilient growth of R356bn in these assets, managed by the PIC (AuM). At a rate 13.2%, AuM growth to over R3trl was achieved despite net outflows of R163bn for benefit payments to client beneficiaries.

The PIC further said its financial and investment performance indicators are independently audited and verified.

"These stand in stark contrast to the deliberate, selective distortions of PIC information by the UDM and Mr Holomisa, and demonstrate a fundamental misunderstanding of complex financial transactions and the PIC's operational protocols," Masondo said.

Specifically, the PIC said its investment in Lanseria Holdings appears to be the primary focus of the misinformed claims by these parties. The PIC asserts that all actions undertaken in this transaction, dating back to 2013, were strictly in accordance with the exhaustive legal agreements governing the transaction and were executed with utmost diligence and adherence to due process. Malicious claims of an unpaid loan due to the PIC are unfounded, as the outstanding loan principal and accrued interest were fully factored into, and deducted from the final settlement amount, in terms of an arbitration award that is legally binding on the PIC.

Masondo said while a legal review on the arbitration proceedings is underway the PIC will provide a detailed account to the Presidency and other organs of state, to show that there were no breaches in governance, instances of “looting” or “creating R400 million of value out of thin air”, in favour of a black economic empowerment partner, as alleged.

"These claims are patently false and demonstrate the mendacity of the UDM and Mr Holomisa to mislead the Presidency, Parliament and the South African public without providing any material fact or evidence," he said 

Legally, the PIC said it has been advised to honour its contractual obligations to counterparties and to resist disclosing pertinent transaction detail in the public domain. When called upon to do so, the PIC stands ready to disclose any information about its financial statements, corporate governance or its investment performance to any bona fide inquiry that seeks to advance transparency and accountability.

As the preferred asset manager for public sector clients – and with substantial public assets entrusted to it – the PIC said it remains fully accountable to its clients and any inquiry from Parliament about its investment activities.

The next Parliamentary engagement for the PIC, with the Standing Committee on Finance (SCOF), is scheduled for Friday 7 November 2025 when the PIC will present its 2024/25 Integrated Annual Report and Financial Statements. All further public comments will be deferred until then, Masondo said.

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