This is why the PIC board resigned

The Public Investment Corporation’s (PIC’s) board of directors yesterday saw a slew of resignations after numerous damning allegations at the PIC inquiry and upheavals in the board itself.

On November 23, the board accepted the resignation of its CEO, Dr Daniel Matjila, with immediate effect.

Then, a week later, the board issued another statement following “allegations of impropriety that implicate two non-executive directors of the PIC board and the acting chief executive officer, the board held a special board meeting on Tuesday evening, January 29, 2019, given the seriousness of the matter.

“Following the recusal of the three affected board members, the board meeting was chaired by the deputy chairperson, Dr Xolani Mkhwanazi.”

Yesterday, the outgoing board noted there had been “various allegations against at least four directors for now”.

“Our assessment is that this may not be the end,” stated a letter signed by several members, including chairperson and Deputy Finance Minister Mondli Gungubele.

“There is clearly a concerted effort to discredit the board of directors to an extent that there cannot be any credibility to the work that is executed in fulfilling its fiduciary duties.”

The directors said they viewed the allegations as an attempt to bring the institution “into a state of paralysis”.

“These events have been unbearable to us as individuals and have undoubtedly had a negative impact on our professional integrity,” the joint statement read.

The nine said they would remain as directors until Finance Minister Tito Mboweni appointed a new board, which they hoped would “be done on an urgent basis”.

In January, a preliminary investigation report submitted to the board “clearly reflects a blatant flouting of governance and approval processes of the PIC”.

“Employees of the PIC have also been implicated in these irregularities,” the PIC statement read.

“It is for this reason that the board has resolved to suspend the executive head of Listed Investments, Mr Fidelis Madavo and the assistant portfolio manager: Mr Victor Seanie with immediate effect.”

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