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South Africa\u2019s financial industry watchdog, the Financial Sector Conduct Authority (FSCA), revealed in a late-night statement on Tuesday that it has launched an investigation into the Public Investment Corporation (PIC).<\/p>\n
The PIC, which is Africa\u2019s largest asset manager with around R3.7 trillion in assets under management, falls under the regulatory mandate of the FSCA as it holds an FSCA-issued licence as an authorised Financial Services Provider (FSP).<\/p>\n
This is the latest development to rock the PIC, coming just a day after its CEO Patrick Dlamini was placed on precautionary suspension by the PIC\u2019s board on Monday, following whistleblower allegations of impropriety. The board stressed that the move is in line with its whistleblower policy.<\/p>\n
Read:\u00a0PIC CEO Patrick Dlamini suspended amid whistleblower allegations<\/p>\n
\u201cThe FSCA takes note of the developments at the PIC and the allegations made in recent media articles concerning whistleblower reports and the suspension of its CEO,\u201d the financial watchdog said.<\/p>\n
\n\u201cConsequently, the FSCA has decided to conduct an investigation relating to these developments at the PIC in terms of Section 135 of the Financial Sector Regulation Act.<\/p>\n<\/blockquote>\n
\u201cThe PIC is an authorised FSP subject to the regulation of the FSCA,\u201d it added.<\/p>\n
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\u201cThe FSCA has become increasingly concerned by recent developments at the PIC, particularly those relating to governance, leadership stability, transparency, and the potential impact of these developments on the integrity and confidence in one of South Africa\u2019s important financial institutions,\u201d it said.<\/p>\n
According to the PIC, it is the largest institutional investor in South African listed equities, controlling over 10% of the market capitalisation of the JSE.<\/p>\n
Read: PIC rocked by governance woes \u2026 again<\/p>\n
\u201cThe PIC occupies a unique and critically important position within South Africa\u2019s financial system,\u201d the FSCA stressed.<\/p>\n
\n\u201cAs the country\u2019s largest asset manager and custodian of substantial public sector savings, it bears heightened responsibilities to maintain the highest standards of governance, integrity, accountability and conduct,\u201d it noted.<\/p>\n<\/blockquote>\n
\u201cEvents over recent months raise serious questions as to whether these standards are being consistently upheld,\u201d the FSCA said.<\/p>\n
This is not the first time that the FSCA has investigated the PIC or its executives. It was involved in investigations including into the VBS scandal, which saw two former PIC executives being debarred; and, investigations into funding deals involving Independent News & Media and JSE-listed Ayo Technology Solutions, following recommendations of the Mpati Commission in 2020.<\/p>\n
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\u2018Precautionary suspension\u2019\u00a0<\/strong><\/p>\n
Following the suspension of Dlamini on Monday, PIC spokesperson Sipho Mofokeng stressed in a statement that the move was precautionary in nature and \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
\nMofokeng said the suspension is intended to give Dlamini \u201csufficient space and time\u201d to respond to the allegations.<\/p>\n<\/blockquote>\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
Dlamini commissioned an internal report into the PIC\u2019s unlisted investments earlier this year which raised red flags around the performance of some of these investments.<\/p>\n
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PIC stuffs more funds into Daybreak Foods, after chicken catastrophe<\/p>\n<\/p><\/div>\n#FSCA #launches #investigation #PIC<\/p>\n","protected":false},"excerpt":{"rendered":"
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