The Public Investment Corporation (PIC) board has formally assumed oversight of a whistleblower complaint against chief executive Patrick Dlamini following a special meeting with Finance Minister Enoch Godongwana, amid an escalating dispute that has already triggered a forensic investigation, a R1 billion legal threat and growing scrutiny of governance at Africa’s largest asset manager.
In a statement issued on Thursday, the PIC confirmed that Godongwana, acting as government’s shareholder representative, met the board to discuss challenges facing the institution and their impact on public confidence.
The board said it had received Dlamini’s response to allegations contained in a whistleblower report submitted last week and resolved that the matter would be dealt with under board oversight.
“The meeting today resolved that the response by Mr Patrick Dlamini, the PIC CEO, to allegations in a whistleblower report, submitted to the Board last week, will be dealt with according to the PIC policies and applicable legislation under the oversight of the Board.”
The decision marks the first substantive step taken by the board since it confirmed last week that it had received the whistleblowercomplaint and was assessing its contents.
The allegations emerged against the backdrop of growing controversy surrounding a forensic review commissioned into the PIC’s handling of the Lanseria International Airport investment and an arbitration award in favour of Acapulco Trade & Invest 164.
Last week, the PIC confirmed that Dlamini had announced an independent forensic investigation into the transaction and arbitration process to determine whether reasonable steps had been taken to protect the interests of the PIC and the Government Employees Pension Fund (GEPF).
Pressure on the corporation intensified this week when businessman Kagiso Matjila and Acapulco threatened legal action against the PIC, the GEPF and Dlamini.
In a final demand before action, they called on the PIC to halt the forensic investigation, retract allegations and pay R1 billion in damages, failing which they warned that legal proceedings would follow.
The statement confirms that the board has moved beyond simply receiving the complaint and has now assumed formal oversight of the process.
Significantly, neither the minister nor the board sought to dismiss the allegations outright.
Instead, the PIC said allegations raised through whistleblowing mechanisms should “neither be ignored nor prejudged” and must be assessed fairly, independently and in accordance with legislation, governance standards and the principles of natural justice.
The corporation also used the statement to reject allegations of divisions between the minister, the board and management, describing claims circulating on social media as “mischievous” and part of an “orchestrated disinformation campaign”.
The PIC said such allegations posed a reputational risk to an institution responsible for managing more than R3.6 trillion in public pension and social security assets.
At the same time, the board acknowledged that historic investments and legacy matters continue to affect the institution.
The minister and board agreed that stakeholders should work together to address concerns arising from these investments, while the PIC announced plans to develop a programme aimed at addressing public and client concerns regarding its unlisted investment portfolio.
Godongwana expressed confidence in both the current board and management team.
For the first time since the complaint surfaced, however, the PIC board has publicly committed itself to overseeing the matter. The handling of the complaint is now likely to come under as much scrutiny as the allegations themselves.