The Public Investment Corporation (PIC) board has reaffirmed its commitment to sound governance, transparency and accountability, while welcoming ongoing oversight by the Financial Sector Conduct Authority (FSCA).
In a statement issued on Wednesday, the board said strong regulatory supervision was essential to maintaining a healthy democracy and a resilient financial system, adding that the PIC and the FSCA shared a common responsibility to safeguard the retirement savings of millions of South Africans.
Ongoing scrutiny of governance practices at PIC
The statement comes amid continued scrutiny of governance practices at the state-owned asset manager, which manages funds on behalf of the Government Employees Pension Fund (GEPF) and other public sector clients.
The board said both the previous and current leadership structures had prioritised strengthening governance and implementing recommendations made by the Mpati Commission of Inquiry, which investigated allegations of impropriety at the PIC.
According to the board, Finance Minister Enoch Godongwana confirmed in responses to parliamentary questions in 2024 and 2025 that the PIC had completed the implementation of the commission’s recommendations.
“The PIC has completed the implementation of the recommendations of the Mpati Commission Report into allegations of impropriety at the PIC, which were aimed at addressing the governance, operational and ethical deficiencies within the entity which were identified by the Commission,” Godongwana said.
He added that the implementation process had “rectified the deficiencies identified by the Commission”.
Challenges remain
The board acknowledged that challenges remained but said the corporation had made significant progress in strengthening its governance framework and improving oversight mechanisms.
It reiterated its commitment to cooperating fully with regulators and ensuring that any governance concerns are addressed through independent, credible and transparent processes.
The board also expressed appreciation for the FSCA’s continued supervisory role, saying it looked forward to constructive engagement with the regulator to help maintain confidence in South Africa’s financial sector and protect the interests of pensioners.
“The FSCA and the PIC share a common responsibility to protect the retirement savings of millions of South Africans through sound governance, accountability and transparency,” the board said.
The Financial Sector Conduct Authority launched an investigation into the PIC, citing concerns over governance, leadership stability and transparency at the state-owned asset manager.
In a statement late on Tuesday, the regulator said it had become “increasingly concerned” by recent developments at the PIC, including issues related to governance, leadership stability, transparency and the potential impact on confidence in one of Africa’s largest asset managers.
CEO placed on suspension
On Monday, the PIC’s board of directors placed chief executive Patrick Dlamini on precautionary suspension after a whistleblower complaint against him. It gave no further details of the allegations and said the suspension did not constitute a finding and was not a pronouncement of any wrongdoing. Dlamini could not be reached for comment.
The regulator said these recent events had raised “serious questions” about whether the PIC was consistently upholding standards of governance, integrity, accountability and conduct expected of such an institution.
The PIC manages more than R3-trillion in assets and is the biggest investor on the Johannesburg Stock Exchange.
The FSCA said its investigation relates to these developments and did not provide the expected duration of the investigation.
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- The Public Investment Corporation (PIC) board reaffirmed its commitment to sound governance, transparency, and accountability, welcoming ongoing oversight by the Financial Sector Conduct Authority (FSCA).
- Both PIC and FSCA emphasize their shared responsibility to safeguard the retirement savings of millions of South Africans, highlighting the importance of strong regulatory supervision.
- The PIC board noted that previous and current leadership have prioritized implementing the Mpati Commission of Inquiry's recommendations to address past governance and ethical improprieties.
- Finance Minister Enoch Godongwana confirmed that PIC has completed the implementation of all recommendations from the Mpati Commission, rectifying identified governance and operational deficiencies.
- Despite acknowledging ongoing challenges, the PIC board expressed readiness to fully cooperate with regulators, enhance governance frameworks, and maintain confidence in South Africa's financial sector.
In a statement issued on Wednesday, the board said strong regulatory supervision was essential to maintaining a healthy democracy and a resilient financial system, adding that the PIC and the FSCA shared a common responsibility to safeguard the retirement savings of millions of
“
He added that the implementation process had “rectified the deficiencies identified by the Commission”.
It reiterated its commitment to cooperating fully with regulators and ensuring that any governance concerns are addressed through independent, credible and transparent processes.
“
In a statement late on Tuesday, the regulator said it had become "increasingly concerned" by recent developments at the PIC, including issues related to governance, leadership stability, transparency and the potential impact on confidence in one of Africa's largest asset managers.
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