PIC needs new hands on tiller

The interim board of the Public Investment Corporation (PIC), which was appointed in July 2019, stepped down at the end of October.

With assets under management worth around R2.3 trillion (2020: R1.9 trillion), the PIC is the largest asset management company in Africa.

The Government Employees Pension Fund (GEPF) is the PIC’s largest client, comprising 89.24% of assets under management.

At the media briefing which followed the final meeting of the interim board last Thursday, outgoing PIC board chair Dr Reuel Khoza said that at the time the interim board was appointed, the reputation of the PIC was
beset by allegations of misconduct and irregularities.

“The PIC was viewed with suspicion and alleged to serve those who were politically connected,” he said.

Finance Minister Enoch Godongwana, who was busy electioneering and campaigning last week, has not yet named a successor to Khoza, nor a new PIC board.

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The Judicial Commission of Inquiry into Allegations of Impropriety at the PIC was appointed by President Cyril Ramaphosa on 4 October 2018 and chaired by Judge Lex Mpati.

The commission’s report was released in March 2020.

The commission made many recommendations towards improving governance processes and accountability, and an advisory panel led by retired judge Yvonne Mokgoro was established to assist the interim board in carrying out the recommendations of the commission.

Khoza said when the interim board took over in July 2019, some of the shortcomings were so obvious that it didn’t need a committee to investigate them.

There was too much executive power in the CEO.

The PIC said that it has been resolute in implementing the commission’s recommendations “to act decisively against parties identified in the report”.

Steps included disciplinary procedures against implicated officials and full cooperation with criminal investigations