'Closer scrutiny' is necessary regarding Standard Bank's involvement in PIC transactions

Following ongoing debates about governance, transparency, and the role of financial institutions in state-linked investments, Standard Bank's past involvement in a number of high-profile infrastructure transactions has come under increased public scrutiny.

Among these transactions are deals connected to Harith General Partners, one of Africa’s largest infrastructure investors, which manages significant assets on behalf of the PIC, the continent’s biggest fund manager. Harith led a consortium that, in 2012, acquired 100% of Lanseria International Airport, one of South Africa’s key privately owned airports.

The consortium’s shareholding included the Government Employees Pension Fund (GEPF) through the PIC, alongside a Black Economic Empowerment (BEE) partner, Acapulco Trade and Investment. Acapulco is currently involved in legal proceedings with the PIC over a compensation award of more than R411 million, following the collapse of a financing arrangement linked to Lanseria Holdings, the airport’s operating company.

The arbitration award came despite Acapulco’s reported default on the underlying debt, which escalated to approximately R630 million.

United Democratic Movement (UDM) leader General Bantu Holomisa has recently voiced concerns regarding the structuring of certain investment deals involving the PIC and commercial banks. In correspondence addressed to President Cyril Ramaphosa and Standing Committee on Public Accounts (Scopa) chairperson Songezo Zibi, Holomisa raised questions about whether some transactions may have exposed public funds particularly those of pensioners to disproportionate financial risk.

Holomisa did not accuse any bank of wrongdoing but urged greater oversight of financial institutions that repeatedly feature in such deals. When asked which institution was most often associated with PIC and GEPF transactions, he identified Standard Bank as one that frequently appeared as an advisor or financier.

He added that the bank’s recurring role in these transactions may warrant “closer scrutiny” from regulators and Parliament, particularly given its stature in managing and facilitating large-scale public investments.

In 2024, Harith launched Harith InfraCo, a new entity that took a 37.5% stake in Lanseria International Airport as part of a R6.5 billion acquisition of the Pan-African Infrastructure Development Fund (PAIDF) assets.

New equity partners in the deal included Zungu Investments and Mergence Investment Managers, joining the Development Bank of Southern Africa (DBSA) and the GEPF, who retained their existing exposure through the PIC. The transaction marked a significant shift for Harith, from acting solely as a fund manager to becoming a direct equity stakeholder in its portfolio assets.

According to Dealmakers SA, while PSG Capital served as the main corporate advisor, Standard Bank also acted as an advisor on the debt funding aspects of the deal. Other advisory firms included White & Case (SA), KPMG, and Nolands Capital.

Harith’s operations have previously been examined by regulatory and investigative bodies.

The company was prominently featured in the 2019 Mpati Commission of Inquiry into governance at the PIC, which examined allegations around excessive management fees and potential conflicts of interest in investment structures.

The Commission ultimately found no evidence that Harith had engaged in conduct detrimental to the PIC.

However, in October 2025, the Financial Sector Conduct Authority (FSCA) fined Harith R1.7m for shortcomings in its anti-money laundering controls. The regulator stated that Harith had failed to fully comply with certain obligations under the Financial Intelligence Centre Act (FICA), including the verification of client identities and the source of funds, as well as screening against international sanctions lists.

The FSCA noted that Harith’s internal controls required strengthening to ensure compliance with financial crime prevention standards.

When approached for comment, Standard Bank spokesperson Ross Linstrom said the bank consistently conducts its operations in strict compliance with all applicable laws, regulations, and governance standards.

“As a matter of policy, Standard Bank does not discuss the details of client relationships or specific transactions unless such information has been publicly disclosed,” Linstrom said.

“The bank remains committed to transparency in all its dealings, always within the bounds of client confidentiality, contractual obligations, and the regulatory framework governing financial conduct.”

He added: “Standard Bank continues to uphold the highest ethical standards, maintaining investor confidence through responsible banking practices and sound corporate governance. We remain focused on supporting South Africa’s financial stability and long-term economic development.”

Linstrom further stated that the bank would not comment on any matters currently before the courts in which it is not a party.

Harith General Partners declined to comment, saying the company cannot discuss the matter.

The PIC had not responded at the time of publication.

Meah Mohale, an associate attorney at Matbotja Attorneys, responding on behalf of Acapulco Trade and Investment, said the company had no relationship (direct or indirect) with Standard Bank in respect of its Lanseria investment, adding that the the bank played no advisory role in the acquisition in 2012. 

“The loan advanced to our client was concluded solely with the PIC under bilateral agreements to which no commercial bank was party. Our client was not involved in, nor was it a beneficiary of, the Pan African Infrastructure Development (PAIDF) transactions referenced in your email.

"Our client cannot comment on the advisory mandates or commercial decisions of Standard Bank, Harith, or any other third party," Mohale said.

The PIC, which holds a 30% stake in Harith General Partners and a 46% interest in Harith Fund Managers, plays a pivotal role as a major institutional investor in the region. The corporation manages funds on behalf of the GEPF and approximately 34 other public sector entities.

Standard Bank, for its part, continues to play a significant role in South Africa’s financial ecosystem, acting as a financier, arranger, and advisor on multiple infrastructure and development transactions. Among other mandates, it served as a lead arranger for the R567 million debt funding of the Lower Maguduza Hydropower Project in Eswatini, which involved funds managed by Africa Infrastructure Investment Managers (AIIM).

* This story has been updated to include a response from Acapulco Trade and Investment.

manyane.manyane@inl.co.za