<\/p>\n
Africa\u2019s biggest fund manager is again tangled up in a governance and management crisis, while its unlisted investments continue to underperform.<\/p>\n
South Africa\u2019s Finance Minister Enoch Godongwana and the Public Investment Corp\u2019s board met on Thursday as a public rift over the management of parts of the R3.6 trillion fund expose 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 due to investment decisions often linked to politically connected individuals.<\/p>\n
It has invested about R67 billion in nearly 150 unlisted entities since its inception in 2005 and at least 78 of these have lost some or all of the money, according to parliament data. The fund manager has suffered significant losses with deals done around cement-maker AfriSam and chicken company Daybreak Farms, among many others, according to the data.<\/p>\n
Read:
PIC stuffs more funds into Daybreak Foods, after chicken catastrophe
Business rescue for stricken chicken producer Daybreak Foods
Top Africa fund manager PIC backs chicken producer with loan<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Godongwana is said to have been at odds with PIC\u2019s chair David Masondo, who is also his deputy in the finance ministry, over the handling of a report commissioned by PIC chief executive officer Patrick Dlamini and a subsequent whistleblower tip-off, according to people familiar with the matter who asked not to be identified because they aren\u2019t authorised to speak publicly.<\/p>\n
Read:
PPC and AfriSam merger faces competition authority hurdles
Many questions about PPC, AfriSam merger<\/p>\n
An investigation by PwC was ordered by Dlamini into valuations related to a Black economic empowerment deal linked to an investment in Lanseria airport outside Johannesburg. The report exposed alleged wrongdoing and named PIC staff. A whistleblower report later accused Dlamini of over-stepping his mandate and breaching governance limits by issuing the investigation.<\/p>\n
\u201cThe meeting today resolved that the response by Mr Patrick Dlamini, the PIC CEO, to allegations in a whistleblower report, submitted the board last week, will be dealt with according to the PIC policies and applicable legislation under the oversight of the board,\u201d the PIC said in a statement. \u201cToday\u2019s meeting agreed to develop a programme to address public and client concerns about legacy investments in the PIC\u2019s unlisted portfolio.\u201d<\/p>\n
The latest battle follows the suspension of former chief investment officer Kabelo Rikhotso last year, along with unlisted portfolio head Thabiso Moshikara.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Read:
PIC responds to R88bn loss, explains unlisted investment mandate
PIC seeks sovereign fund partners
PIC suspends investment head on misconduct claims
PIC board replacement \u2018troubling\u2019: Maimane<\/p>\n
The country\u2019s second-largest political party, the Democratic Alliance, on Wednesday said it had submitted parliamentary questions regarding \u201creckless\u201d investments, and demanded reform to \u201cthe process by which the board and chairperson are selected.\u201d<\/p>\n
South Africa\u2019s Finance Minister had confidence in the current PIC board and management team, according to the statement from the fund manager.<\/p>\n
Read the PIC\u2019s statement here.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n
#PIC #rocked #governance #woes<\/p>\n","protected":false},"excerpt":{"rendered":"
Africa\u2019s biggest fund manager is again tangled up in a governance and management crisis, while its unlisted investments continue to underperform. South Africa\u2019s Finance Minister Enoch Godongwana and the Public… <\/p>\n","protected":false},"author":1,"featured_media":8058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[2167,10261,7151,9530],"class_list":["post-8057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-governance","tag-pic","tag-rocked","tag-woes"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/8057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8057"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/8057\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/8058"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}