PIC criticised for failing to implement key Mpati Commission recommendations amid boardroom crisis

The Public Investment Corporation (PIC) is under renewed scrutiny after a string of boardroom resignations and the precautionary suspension of its CEO highlighted what critics say is a failure to implement key recommendations from the Mpati Commission.

What happened

The Public Servants Association (PSA) has demanded that Finance Minister Enoch Godongwana publicly account for the status of implementation of the Mpati Commission’s recommendations, saying recent events expose gaps in reform at the PIC.

The unrest followed the precautionary suspension of CEO Patrick Dlamini and the launch of an investigation by the Financial Sector Conduct Authority (FSCA). The PIC board later appointed Chief Financial Officer Batandwa Damayi as acting CEO.

Resignations and governance concerns

The PSA pointed to recent resignations by board members, including Matimba Justice Shiburi, the PSA’s board representative, and earlier departures of non-executive directors Thabi Nkosi and Nosiphiwo Balfour, as evidence that reforms have not been embedded.

The PSA said:

“The continued suspension of senior executives, the resignation of board members, and persistent questions regarding governance suggest that the institutional reforms envisaged by the Mpati Commission have not been adequately embedded in the PIC”.

Dispute over handling of the suspension

The suspension of Dlamini related to a contested R500 million payout concerning Lanseria Airport and a forensic investigation said to have been launched without board approval. The suspension followed a whistle-blower report alleging unethical conduct and governance failures.

Finance Minister Godongwana had earlier called for an internal audit review instead of immediate suspension, but the PIC board, chaired by Deputy Finance Minister David Masondo, proceeded to suspend Dlamini. Masondo told employees the board sought independent legal advice before the suspension.

Unimplemented Mpati recommendations

The PSA highlighted several recommendations from the Mpati Commission that remain unimplemented, including PIC governance reforms, the appointment of an independent chairperson, proposals for an independent Office of Public Integrity, and government-wide lifestyle audits.

“The commission made several recommendations aimed at strengthening governance, improving transparency, depoliticising board appointments, tightening investment oversight, and ensuring that the PIC acts solely in the best interests of its clients and beneficiaries. Had these recommendations been implemented in full and without delay, many of the governance failures that continue to emerge could have been prevented or significantly mitigated,” the PSA said.

Responses and wider reactions

The National Treasury did not comment at the time of publication.

Masondo revealed a communication gap after discovering the board had not been informed of an FSCA document request relating to the whistleblower; he said he subsequently furnished the requested documentation and addressed employees at a town hall to reassure them the entity remains operationally stable.

Political analyst Zakhele Ndlovu was quoted saying the PIC’s problems reflect broader societal issues and linked the persistence of patronage to obstacles in implementing the Mpati Commission’s findings. The Democratic Alliance disputed the PIC’s claim that the Mpati recommendations have been fully implemented and said Masondo should be replaced with an independent chairperson, in line with the commission’s recommendation.

What the PSA wants

The PSA urged the Finance Minister to publicly report on how far implementation of the Mpati Commission’s recommendations has advanced, saying pension fund members who rely on the PIC through the Government Employees Pension Fund require assurance that the commission’s recommendations have resulted in meaningful institutional reform.