Cabinet appoints new PIC board chaired by Seiso Mohai

The Cabinet has announced the appointment of eight non-executive directors to the embattled Public Investment Corporation (PIC) board, which will be chaired by Deputy Minister in the Presidency for Planning, Monitoring and Evaluation, Seiso Joel Mohai.

Mohai takes over as chairperson amid Finance Minister Enoch Godongwana’s effort to stabilise the state asset manager after weeks of governance turmoil.

Minister in the Presidency Khumbudzo Ntshavheni announced the appointments during Thursday’s post-Cabinet media briefing, saying the Cabinet had approved the appointment of eight non-executive directors to address governance challenges at the corporation.

Mohai will chair the board alongside Patience Nqeto, Lebogang Mokgabudi, Adv Gatlelane Ouma Rasethaba, Vivien McMenamin, Bajabulile Swazi Tshabalala, Itani Mafune and National Treasury representative Moipone Ramoipone.

“The appointment is aimed at addressing current governance challenges. The Minister of Finance will continue to drive the reforms of the PIC as recommended by the Judge Mpati commission in consultation with Cabinet,” Ntshavheni said.

Appointment follows mass resignations

The appointments come after six non-executive directors, including former chairperson and Deputy Finance Minister David Masondo, resigned from the board earlier this month, leaving the country’s biggest asset manager without a quorum.

The resignations followed growing tensions over governance issues, including the precautionary suspension of chief executive Patrick Dlamini and differences between the board and Godongwana over the running of the corporation.

Sunday World first reported that Mohai had emerged as the frontrunner to replace Masondo after sources revealed that the government was considering appointing him to lead efforts to restore stability at the PIC. The newspaper also revealed that Godongwana had wanted the previous board removed amid the escalating governance dispute.

Restoration governance and institutional stability

Welcoming the appointments, the PIC said the reconstituted board would play a critical role in restoring governance and institutional stability.

“The PIC appreciates that the Minister of Finance, Mr Enoch Godongwana, and Cabinet have moved with urgency to get a new board in place that will bring much needed stability to the organisation,” acting chief executive Batandwa Damoyi said.

Damoyi said management was ready to work with the new board to rebuild confidence in the corporation.

“The PIC management team is ready to welcome new Board members, and we are committed to work constructively with the board to rebuild public trust and provide assurance to all PIC clients that their retirement savings and social security funds continue to show robust growth. The immediate priority is to ensure a seamless induction process for all new board members, so that the board can begin its oversight duties without delay,” she said.

‘A properly functioning board is essential’

The PIC said the appointments come at a critical time, noting that a properly functioning board is essential for sound governance, effective oversight and the prudent management of assets on behalf of its clients.

The corporation said the expertise and experience of the incoming board would strengthen accountability, transparency and responsible investment as it enters its next phase of strategic delivery.

The PIC manages more than R3-trillion in assets, primarily on behalf of the Government Employees Pension Fund and other public sector clients. The new board is expected to oversee the implementation of governance reforms flowing from the Judge Mpati commission, while steering the institution through one of the most challenging periods in its history.

 

 

Sunday World