Dan Matjila, chief executive at the Public Investment Corporation, has kept his job, the state owned asset manager announced on Friday evening.
Matjila appeared before a board meeting on Friday, to answer allegations, which surfaced in the media, that he had allegedly used PIC funds to support a supposed girlfriend.
But in a statement the PIC’s board said it “expressed its confidence in the ability and integrity of the CEO, Dr Daniel Matjila, management and staff of the PIC”.
“The CEO made representations to the board responding to allegations levelled against him through the media,” the statement said.
“The CEO provided detailed documentary evidence of the decisions made by the PIC and that the process followed was in accordance with all policies, procedures and delegation of authority of the PIC.”
To ensure the “completeness of the process and for its final assurance” the board has asked the PIC’s internal audit division to independently review the representations made by Matila, it said.
On Thursday, the Star newspaper reported that the allegations levelled at Matjila were linked to a plot by the controversial Gupta family to oust Matjila from his post.
But the board said it “rejects these allegations with the contempt they deserve”.
The PIC controls almost R2-trillion in government workers pensions. There has been growing concern that these assets will be used to prop up ailing state owned entities – a number of which are reeling from corruption allegations linked to the Gupta’s.