PIC Board Still In Place For Now

Dondo Mogajane, director general of the South African National Treasury, left, walks with Tito Mboweni, South Africa's finance minister, center, as he heads to parliament to present his mid-term budget in Cape Town, South Africa, on Wednesday, Oct. 24, 2018. Mboweni’s appointment as South Africa’s finance minister two weeks ago appeased investors, but his first mid-term budget showed the nation’s debt burden is heavier than they previously thought. PICTURE: Waldo Swiegers/Bloomberg

JOHANNESBURG: PIC board members to stay put until the minister appoints a new board. 

In a statement that was issued by the Public Investment Corporation (PIC) on Tuesday, it confirmed the board members stay at the entity until a new board is appointed.

‘The non-executive directors have committed to remain as directors until the minister appoints a new board,’ the statement reads. 

The board, which has asked to be relieved, will remain in place until Finance Minister Tito Mboweni appoints new directors, said the government-owned asset manager on Tuesday. This statement comes after the board members wrote to Mboweni last week asking to be relieved of their duties.

In a letter to Mboweni, the PIC board cited the destabilising impact of “events in the recent past”, including allegations of impropriety levelled against at least four directors, as the reason.

The PIC, the biggest asset manager in Africa, manages almost R2 trillion in government pensions and other funds and has been mired in controversy with allegations of impropriety against its directors regarding some of its investment decisions.

A commission of inquiry has been established to probe, among others, investment decisions by the PIC or whether its policy or contractual obligations resulted in any undue benefit for any director, or employee or any associate or family member of any PIC director or employee at the time.