By Thebe Mabanga
The Financial Sector Conduct Authority (FSCA) has opened an investigation into the Public Investment Corporation (PIC) following whistleblower allegations and the precautionary suspension of chief executive Patrick Dlamini.
“The Financial Sector Conduct Authority (FSCA) has become increasingly concerned by recent developments at the Public Investment Corporation SOC Ltd (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’s important financial institutions,” the watchdog said in a statement posted to its X account on Wednesday.
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It said the PIC’s role as the country’s largest asset manager and custodian of substantial public-sector savings placed greater responsibilities on it to uphold appropriate standards.
“The PIC occupies a unique and critically important position within South Africa’s financial system,” the regulator said.
“[I]t bears heightened responsibilities to maintain the highest standards of governance, integrity, accountability, and conduct. Events over recent months raise serious questions as to whether these standards are being consistently upheld.”
The FSCA investigation is separate from the internal process being conducted by the PIC board into allegations contained in a whistleblower report submitted in June.
The PIC placed Dlamini on precautionary suspension on Monday to allow the allegations to be investigated.
“The suspension does not, in any way, constitute a finding nor is it a pronouncement of any wrongdoing on the part of the CEO,” the board said.
The whistleblower allegations relate to the PIC’s handling of a long-running dispute connected to its investment in Lanseria Airport, including the appointment of PwC to examine the transaction and related arbitration proceedings.
The complaint also reportedly raises questions about decision-making processes and possible conflicts involving infrastructure investment company Harith General Partners. Dlamini has denied wrongdoing, including allegations that he acted without the required authority or failed to disclose a conflict of interest.
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No acting chief executive had been announced following his suspension.
The PIC board separately said August van Heerden would cease serving as acting chief investment officer after it considered a resolution from the Government Employees Pension Fund, its largest client.
Leon Smit, the PIC’s head of fixed income in listed investments, was appointed acting chief investment officer. Smit joined the corporation in 2000 and has previously held the acting CIO position.
The PIC manages more than R3 trillion on behalf of public-sector clients, including the GEPF.
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