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The Board of the Public Investment Corporation (PIC) has resolved to place chief executive Patrick Dlamini on precautionary suspension in line with its whistleblower policy.<\/p>\n
The decision, announced on Monday, follows weeks of internal strife and allegations of impropriety submitted to the board in a whistleblower report last month.<\/p>\n
Read: PIC rocked by governance woes \u2026 again<\/p>\n
Strife<\/span><\/strong><\/p>\n Finance Minister Enoch Godongwana and the PIC Board met in June as a public rift over the management of parts of the R3.6 trillion fund exposed the latest bout of executive and political infighting.<\/p>\n The PIC manages the pension savings of 1.3 million civil servants and has endured serious governance breaches and financial losses linked to politically connected investment decisions.<\/p>\n Parliamentary data shows the PIC has invested about R67 billion in nearly 150 unlisted entities since 2005, with at least 78 of these losing some or all of the money.<\/p>\n<\/blockquote>\n Godongwana is reported to have clashed with PIC Chair David Masondo, who is also his deputy in the finance ministry, over the handling of a report commissioned by Dlamini and a subsequent whistleblower tip?off.<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n The divisions have added to the pressure on the PIC, which has faced repeated calls to strengthen governance and accountability.<\/p>\n Read: PIC spokesperson Sipho Mofokeng said the suspension is intended to give Dlamini \u201csufficient space and time\u201d to respond to the allegations.<\/p>\n \u201cIn line with applicable labour legislation and internal PIC policies, the precautionary suspension is intended to ensure a fair, objective and independent investigation into these allegations,\u201d he said.<\/p>\n Mofokeng stressed that the suspension \u201cdoes not, in any way, constitute a finding nor is it a pronouncement of any wrongdoing on the part of the CEO.\u201d<\/p>\n He added that interim arrangements for the Acting CEO position are being finalised and will be announced in due course.<\/p>\n The board also confirmed leadership changes in its investment division. Mofokeng said that, having taken into account the resolution of the Government Employees Pension Fund (GEPF), the PIC\u2019s biggest client, the board resolved that August Van Heerden will cease serving as Acting Chief Investment Officer.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n \u201cTo ensure stability and optimum management of PIC investment decisions, the Board further resolved that Mr Leon Smit, the current Head for Fixed Income in Listed Investments for the PIC, will be appointed as Acting CIO,\u201d Mofokeng said.<\/p>\n<\/blockquote>\n Smit, who joined the PIC in 2000, leads the management of listed fixed income investments and cash flows in line with client mandates.<\/p>\n \u201cHe is responsible for overseeing the PIC\u2019s listed fixed income dealing activities on the domestic market and driving investment performance while maintaining prudent risk management,\u201d Mofokeng noted.<\/p>\n Smit holds a Bachelor of Commerce in Business Economics from the University of Pretoria and has completed advanced qualifications in Treasury Management, Financial Markets and Financial Advisory and Intermediary Services (Fais).<\/p>\n He has previously acted as CIO during interim periods.<\/p>\n The PIC Board said it remains \u201ccommitted to the highest standards of governance and institutional integrity\u201d as the investigation proceeds.<\/p>\n This article was first published here.<\/p>\n<\/p><\/div>\n #PIC #CEO #Patrick #Dlamini #suspended #whistleblower #allegations<\/p>\n","protected":false},"excerpt":{"rendered":" The Board of the Public Investment Corporation (PIC) has resolved to place chief executive Patrick Dlamini on precautionary suspension in line with its whistleblower policy. 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Clashes<\/span><\/h3>\n
PIC responds to R88bn loss, explains unlisted investment mandate
PIC investment mandate, red meat exports, and SA Mint commemorates<\/p>\nAllegations<\/span><\/h3>\n
Acting CEO<\/span><\/h3>\n
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Smit<\/span><\/h3>\n
\u2018Committed\u2019<\/span><\/h3>\n