Deputy Finance Minister David Masondo will take the reins as the new chairman of the board of the Public Investment Corporation (PIC), effective immediately, raising fears that the measure will open the door to political interference.
The appointment of the new board comes after the term of the interim board, which was appointed in July 2019 by the administration of then-Finance Minister Tito Mboweni, ended on October 31.
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Read: PIC interim board retreats with a groan
“The PIC looks forward to working with the new board to ensure that the investment objectives of its clients are met and that good corporate governance, ethical conduct and institutional integrity are further ingrained in the institution,” the PIC said in a statement.
The PIC has around R2.3 trillion of assets under management, making it the largest asset management company in Africa. It mainly supervises the pensions of government workers, which represent 89.24% of the assets under management of the PIC.
Masondo will replace the acclaimed businessman, Dr. Reuel Khoza, who was effectively tasked with leading the board in its efforts to restore the PIC after he became embroiled in allegations of misconduct and corporate governance violations.
Return to starting point
During his tenure, Mboweni appointed the first independent president of the PIC in Khoza. Mboweni believed that this measure would not only bring stability to the conflicting SOE, but would also limit political interference.
Before Khoza’s appointment, it was a tradition to appoint the deputy finance minister to serve on the board as chairman as a representative of the shareholders.
Read: “fully autonomous” PIC board
Mpati’s Commission of Inquiry into Allegations of Irregularities at the PIC, which was chaired by Judge Lex Mpati, similarly found that frequent changes in the position of chairman of the board at the PIC played a role in governance issues. asset manager.
However, even after the commission’s findings and Mboweni’s attempts to autonomize the SOE, the PIC Amendment Act could potentially reverse the gains the interim board has made to stabilize the ship.
The law, which President Cyril Ramaphosa signed into law in February, legalizes the long-standing practice (and some might say it’s the source of some of the SOE’s problems) of having the deputy finance minister as chairman of the board.
Read: PIC Query: Corruption or Sheer Incompetence?
The rest of the PIC team
Masondo’s team includes:
- Frans Baleni
- Ntombifuthi Mtoba
- Tryphosa ramano
- All praise
- Esther barbara watson
- Beverly builder
- Mr. Mugwena Maluleke
- Walter hlaise
- Lufuno mulaudzi
- Abel Sithole
- Brian mavuka
- Makano mosidi