The high court ruling that chief executive Patrick Dlamini must return to work has added a new twist to the cold war between finance minister Enoch Godongwana and his deputy, former Public Investment Corporation (PIC) chairperson David Masondo.
The Gauteng High Court ruled on Tuesday that Dlamini must be reinstated after his suspension led to escalations at PIC that culminated in the collapse of the then Masondo-led board.
Masondo has since been replaced with Deputy Minister in the Presidency, Seiso Mohai, following the appointment of a new PIC board last week.
Godongwana’s fallout with Masondo was reportedly over Dlamini’s suspension, among other things. The suspension is said to have blindsided the minister, who learnt about it after the fact.
The court has thus ruled in Godongwana’s favour.
Read More: ‘It’s not personal’: Masondo addresses Godongwana tensions
“I accordingly make the order [that] the precautionary suspension notice issued to the Applicant on 13 July 2026 is declared unlawful and invalid,” reads the ruling.
“The suspension of the Applicant as CEO of the PIC is set aside. The intervention application of Mr Jabu Happy Moche [friend of the court] is dismissed.
“The application by Public Interest South Africa for admission as amicus curiae and a co-respondent is dismissed. The First and Second Respondents (PIC board and Godongwana) are ordered to pay the costs of this application, including the costs of two counsel on scale C, jointly and severally, the one paying the other to be absolved.
Dlamini had rushed to court, arguing that the PIC board had no power to suspend him since he was appointed by the minister in consultation.
Read More: PIC board had power to suspend CEO
Even in the instance of delegation of authority, Dlamini had told the court that Masondo as PIC board chair would have had to get Godongwana’s approval.
None of the sort had happened prior to his suspension, which he argued was done by the board “unilaterally, without ministerial approval and in disregard of its own policies.”
The invalidation of Dlamini’s suspension supports Godongwana’s protestation after learning about the suspension.
Godongwana, after learning of Dlamini’s suspension, had convened a shareholder’s meeting to address what he termed a governance crisis at PIC.
Masondo and other PIC board members resigned, leading to the collapse of the board, and cabinet moved in haste to appoint a new board last week.
- The Gauteng High Court ruled that PIC CEO Patrick Dlamini’s suspension was unlawful and ordered his reinstatement.
- Dlamini argued the PIC board lacked authority to suspend him without Finance Minister Enoch Godongwana’s approval.
- The suspension triggered a governance crisis, leading to the resignation of David Masondo and other PIC board members.
- Masondo was replaced by Deputy Minister in the Presidency Seiso Mohai following appointment of a new PIC board.
- The ruling favored Godongwana, who was reportedly blindsided by the suspension and sought to address the governance issues at PIC.
Read More: 'It's not personal':
"I accordingly make the order [that] the precautionary suspension notice issued to the Applicant on 13 July 2026 is declared unlawful and invalid," reads the ruling.
"
"
Read More: PIC board had power to suspend CEO
Even in the instance of delegation of authority,
None of the sort had happened prior to his suspension, which he argued was done by the board "unilaterally, without ministerial approval and in disregard of its own policies."
