THE precautionary suspension of Public Investment Corporation (PIC) CE Patrick Dlamini, resignations of board of members and interference by the minister of Finance Enoch Godongwana, shows the entity may be ‘captured’.
Overseeing over R3-trillion in assets on behalf of the Government Employees Pension Fund and other public sector clients, one would expect proper governance regulations to be adhered to.
As a result, the Financial Sector Conduct Authority (FSCA) has announced it will open a formal investigation into one of South Africa’s largest asset manager.
The investigation follows the PIC board’s decision to place Dlamini on precautionary suspension after receiving a whistleblower report alleging impropriety.
On Tuesday, the regulator said it had become “increasingly concerned” by recent developments at the PIC, citing governance, leadership stability, transparency and the potential impact on confidence in one of the country’s most important financial institutions.
The FSCA confirmed it will investigate the developments under section 135 of the Financial Sector Regulation Act, noting that the PIC is an authorised financial services provider that falls under its regulatory oversight, without specifying its scope of investigation, and does take note of whistleblower allegations.
The PIC is also restructuring its executive leadership following Dlamini’s suspension and replacement of acting chief investment officer August van Heerden with Leon Smit.
According to the whistleblower investigations, the PIC has already referred matters arising from its forensic review of the Lanseria Airport investment to the Special Investigating Unit after legal advice on the findings.
Mail & Guardian confirmed thatsome of the following board members have tendered their resignations: Lerato Makwetla, Lindy Bodewig, Mpumelo Maseko and Dorothy Kobe, bringing the total number of resignations to six, including that of Thabi Nkosi and Nosiphiwo Balfour.
The whistleblower also alleges Dlamini enjoyed the Minister’s personal protection and that no process against him would be allowed to run its course. It calls on Parliament to investigate what it describes as the relationship between the two men dating back to their time at the Development Bank of Southern Africa.
Godongwana told the Mail & Guardian: “I know nothing about that. I can’t comment,” when probed on the allegations.
The allegations are contained in a notice submitted by the whistleblower to Parliament’s Standing Committee on Finance.
A year ago the same PIC felt the sting of greylisting.
