Two labour leaders who backed the controversial suspension of Public Investment Corporation (PIC) chief executive Patrick Dlamini are poised to return to the asset manager’s board, despite a court ruling that the previous board had acted beyond its powers in removing him from his duties.
Cosatu has recommended South African Democratic Teachers Union president Mugwena Maluleke and Sadtu treasurer Lindiwe Motshwane as two of three labour representatives on the PIC board. Public Service Commission general manager Reuben Maleka is the third name put forward to represent workers.
Maluleke and Motshwane were closely aligned with former PIC board chairperson and Deputy Finance Minister David Masondo and supported the decision to suspend Dlamini, whose legal challenge ultimately dealt a significant blow to the leadership that took the decision.
The three names are expected to be submitted to the Cabinet economic sub-committee this week before being tabled at Cabinet on September 23. An announcement is expected thereafter.
Their proposed appointments would restore organised labour’s presence on the board after Cabinet appointed a new group of directors in July without labour representatives.
Speaking to Sunday World, Cosatu parliamentary coordinator Matthew Parks said Maluleke and Motshwane were coming back for the sake of “continuity”.
He said the union federation had initially raised concerns about the omission of labour and how long it had taken for their representatives to be appointed.
Parks said Cosatu engaged National Treasury and was informed that the delay was due to the Cabinet process. “The PIC operates daily and it’s important that labour is present. It is their [labourers’] money anyway,”he added.
The PIC Act provides for three representatives of registered trade unions on the board. Two must come from the trade union with most members of the Government Employees Pension Fund, while the third must come from another trade union.
Unions at the Public Service Co-ordinating Bargaining Council select the representatives on their proportional composition.
The appointments come as the PIC attempts to steady itself after a dramatic overhaul of its leadership.
In July, six directors resigned, including Masondo, leaving the board without a quorum. Cabinet subsequently appointed eight non-executive directors, with Deputy Minister in the Presidency Seiso Joel Mohai becoming chairperson.
The upheaval followed months of tension around the running of the institution. Dlamini’s suspension became one of the most contentious disputes.
The CEO was suspended after a whistleblower report raised allegations of wrongdoing.
Dlamini challenged the decision in court and succeeded.
Judge Nathan Mbongwe found that the previous board had acted beyond its powers when it suspended the CEO.
The judgment came as relations between the directors and Finance Minister Enoch Godongwana were becoming increasingly strained.
The subsequent resignation of six directors opened the way for the Cabinet to constitute a new board and attempt to draw a line under the instability.
The new board is also expected to continue implementing reforms arising from the recommendations of the Judge Mpati Commission.
The commission investigated allegations of impropriety and governance failures at the PIC and made recommendations aimed at strengthening accountability, investment practices and oversight.
“There has been substantial progress by the PIC, but what we need now is to ensure that there is good governance,” Parks said.
- Cosatu has recommended Mugwena Maluleke and Lindiwe Motshwane, along with Reuben Maleka, as labour representatives for the PIC board.
- Maluleke and Motshwane had supported the suspension of PIC CEO Patrick Dlamini, which was later ruled beyond the board's powers by Judge Nathan Mbongwe.
- The three names are expected to be submitted to the Cabinet economic sub-committee this week and then tabled at Cabinet on September 23.
- Six directors, including former board chair David Masondo, resigned in July, leading to the appointment of eight new non-executive directors by Cabinet.
- The PIC board is working on reforms following recommendations from the Judge Mpati Commission to improve governance and oversight.
