The leadership crisis at the Public Investment Corporation deepened on Thursday after board chair David Masondo resigned days before a crucial shareholder meeting, where the remaining non-executive directors were expected to be removed.
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Public Investment Corporation (PIC) chair David Masondo has resigned ahead of a shareholder meeting called by Finance Minister Enoch Godongwana, where he was expected to be removed along with the remaining non-executive directors.
Masondo, who is also the Deputy Minister of Finance, announced his resignation in a statement late on Thursday as the PIC grapples with one of the most serious governance crises in its history.
"I have decided to resign as chairperson of the board of the Public Investment Corporation after careful reflection," Masondo said.
"I do so in the interests of the Republic of South Africa, the continued stability of the PIC, and the confidence of the millions of South Africans whose savings are entrusted to this institution."
He noted that he had served at the pleasure of the shareholder minister, whose powers are prescribed by law and must be exercised with due care, diligence and in accordance with the law.
"I am pleased that the Minister of Finance has recognised that, in performing my duties, I acted with integrity and in good faith," he said.
"My actions were guided by the imperative to protect and safeguard the funds entrusted to the PIC on behalf of South Africa's workers and their beneficiaries."
He described the PIC as a critical institution that safeguards the retirement savings of public servants while supporting investment, industrialisation, entrepreneurship and economic growth.
"At a time when confidence in public institutions is paramount, it is important that nothing distracts from this vital mandate," he said.
Masondo said the board had acted collectively, in good faith, based on sound legal advice and in accordance with the principles of good governance. He expressed confidence in the integrity of the board's decisions.
He said the board, management and staff had advanced the implementation of the Mpati Commission recommendations, strengthened governance, reinforced institutional controls, and continued supporting South African businesses, industrialists and entrepreneurs in pursuit of inclusive economic growth.
Masondo thanked fellow board members, management and employees for their professionalism and commitment to rebuilding and strengthening the institution.
"It has been an honour to serve alongside such dedicated professionals," he said.
While maintaining that the board had discharged its responsibilities faithfully, Masondo said leadership required placing the institution above personal interests.
"It is therefore prudent that I step aside to avoid any uncertainty or distraction that could affect the stability of the PIC or undermine confidence in its work," he said.
He wished the incoming board success and urged it to continue protecting the retirement savings of South Africa's workers while growing the investments under the PIC's stewardship.
Masondo also called for outstanding governance matters to be fully investigated.
"I hope that the outstanding matters the previous board was dealing with, including the whistleblower report, the allegations against the CEO, the Acapulco matter, which I referred to the Special Investigating Unit (SIU), and other related issues, will be thoroughly investigated and appropriately addressed rather than swept under the carpet," he said.
He noted that some of these matters are scheduled to be heard in the High Court on 28 July 2028 and said the judicial process should be allowed to proceed without interference.
"For the sake of transparency and accountability, it is important that these issues be determined by the courts and brought to their proper legal conclusion, despite the resignation of the previous board," he said.
Masondo also urged the new board to continue governance and investment reforms, particularly in the unlisted investment portfolio, and to fill critical vacancies as a matter of urgency.
"I leave the board with confidence in the institution, gratitude for the opportunity to have served, and an unwavering belief that the PIC will continue to play a vital role in safeguarding the savings of South Africa's workers and advancing the country's long-term economic development," he said.
Masondo's resignation comes four days before a shareholder meeting reportedly convened by Godongwana, at which the Finance Minister was expected to remove him and the remaining non-executive directors.
The PIC, Africa's largest asset manager, oversees about R3.6 trillion in assets, most of which belong to the Government Employees Pension Fund (GEPF).
The crisis reportedly began earlier this month when PIC chief executive Patrick Dlamini and chief investment officer August van Heerden were suspended following whistleblower allegations linked to a R411 million payment involving Lanseria Airport shareholder Acapulco Trade and Invest.
The claims centre on a forensic investigation into the PIC's decade-old investment in Lanseria Airport.
The matter is now before the courts and is also being investigated by the Financial Sector Conduct Authority (FSCA).
The board has already lost six non-executive directors through resignation.
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