What we know about the PIC CIO’s suspension and the allegations behind it
The Public Investment Corporation's Chief Investment Officer Kabelo Rikhotso
Image: Supplied
Cape Town – Parliament’s Standing Committee on Finance has commended the Public Investment Corporation (PIC) for acting decisively in suspending its Chief Investment Officer (CIO) pending an investigation into allegations of misconduct.
The PIC confirmed that the executive was placed on precautionary suspension last week to allow an independent process to unfold without interference.
In a statement, the committee said it noted the development and welcomed the corporation’s stance in maintaining transparency and upholding good governance practices.
“The committee welcomes the action taken by the PIC Board to uphold governance principles and ensure that any alleged irregularities are properly investigated. Such actions strengthen public trust in the institution,” said committee chairperson Dr Joe Maswanganyi.
Highly placed sources told IOL that the suspension is linked to a number of investment and compliance matters under review, including deals relating to MMI Holdings, the Oceans development in KwaZulu-Natal, as well as certain internal processes within the investment division.
According to the source, the major issue related to the suspension was allegedly linked to FAIS certification.
The sources stressed that the decision to suspend the CIO was procedural and aimed at ensuring a fair and independent review, adding that no conclusions had yet been reached regarding the allegations.
The PIC, which manages assets worth more than R2 trillion on behalf of the Government Employees Pension Fund and other clients, has undergone significant governance reforms following the Mpati Commission of Inquiry. These include the tightening of oversight mechanisms and stricter compliance monitoring.
Maswanganyi said the committee expected the PIC to handle the matter with diligence and transparency.
“We have urged the PIC to ensure that due process is followed and that the matter is concluded swiftly, while keeping Parliament informed of any material developments,” he said.
The PIC said it would not be making further comments until the internal investigation has been completed.