Seiso Mohai appointed to lead PIC after David Masondo’s resignation

Cabinet has appointed Deputy Minister in the Presidency for Planning, Monitoring and Evaluation Seiso Mohai to lead the Public Investment Corporation (PIC) following the resignation of David Masondo.

Appointment approved at Cabinet meeting

Mohai’s appointment was approved by Cabinet during its meeting on Wednesday and announced on Thursday by Minister in the Presidency Khumbudzo Ntshavheni at the post-Cabinet briefing.

Resignation and context

David Masondo resigned last week amid reports of a breakdown in relations between himself, Finance Minister Enoch Godongwana and suspended PIC CEO Patrick Dlamini. His departure came days before a shareholder meeting convened by Godongwana at which he and the remaining non-executive directors were expected to be removed.

Mohai’s background

Mohai has served in Parliament for more than 13 years. He holds a Master of Science degree in Technology and Management and a postgraduate diploma in Management of Technology and Innovation from the Da Vinci Business School. During his parliamentary career he chaired the Standing Committee on Appropriations, co-chaired the Joint Standing Committee on Financial Management of Parliament and serves as a member of the Select Committee on Finance.

Board changes and the wider governance crisis

Cabinet also approved the appointment of seven other non-executive directors to the PIC board.

The PIC, described in the announcement as Africa’s largest asset manager, oversees about R3.6 trillion in assets, most of which belong to the Government Employees Pension Fund (GEPF).

Escalation earlier this month

The governance crisis at the asset manager escalated earlier this month when CEO Patrick Dlamini and Chief Investment Officer August van Heerden were suspended following whistleblower allegations linked to a R411 million payment involving Lanseria Airport shareholder Acapulco Trade and Invest. The allegations relate to a forensic investigation into the PIC’s decade-old investment in Lanseria Airport.

The matter is before the courts and is also under investigation by the Financial Sector Conduct Authority (FSCA). The board has already lost six non-executive directors through resignations.

This report is based on statements made at the post-Cabinet briefing and information released by Cabinet.