Finance Minister Nhlanhla Nene today said he would address troubled governance at the Public Investment Corporation and the future of its CEO Dan Matjila before the end of the week.
In a statement issued by National Treasury, Nene said he would do this after he had met the board of directors of the PIC, Africa’s biggest investment manager with nearly R2 trillion under its management.
“I have completed the review of the documents and evidence regarding the governance issues at the Public Investment Corporation (PIC), as well as the allegations against the CEO of the state-owned fund manager,” the minister said.
“Taking these into account, as well as other developments that have unfolded recently, I will announce the decisive steps to be taken to address the PIC’s governance issues and allegations against the PIC CEO before the end of this week, after I have met with the PIC’s board of directors.”
Matjila has faced a raft of misconduct allegations recently, with United Democratic Movement leader Bantu Holomisa charging that he personally authorised the release of R2 billion to businessmen without approval from the board.
Holomisa earlier this month approached the North Gauteng High Court to have Matjila suspended over allegations that he acted improperly by awarding a R21 million loan to a company that was linked to his purported girlfriend. Nene opposed the application in an affidavit terming the claims “hearsay”.
Nene said today his approach to the oversight of state-owned entities was the the shareholder ministry should firstly ensure that these had directors and executives of requisite skill, and then convey its expectations.
“Once this is done, and the entity lives up to expectations, the shareholder ministry should have no business second-guessing decisions by the board, so long as these decisions are in line with the mandate of the public institution and in keeping with the compact the board of directors entered into with the shareholder ministry. Of course, when the board and management of the entity fail to live up to expectations, the shareholder ministry should intervene appropriately, following due process.”
The PIC has recently faced questions over its management of a 25 percent stake in VBS Mutual Bank.
– African News Agency (ANA)