Standard Bank Faces Scrutiny Over Alleged Exploitation Of The Public Investment Corporation

United Democratic Movement (UDM) leader General Bantu Holomisa has accused Standard Bank of structuring deals with the Public Investment Corporation (PIC) that serve its own interests while putting public funds at risk. His claims have sparked fresh concerns over governance and accountability in South Africa’s largest state-owned asset manager.

Holomisa Sounds The Alarm

In a formal letter addressed to President Cyril Ramaphosa and SCOPA chairperson Songezo Zibi, Holomisa alleged that major banks particularly Standard Bank have been exploiting loopholes in the financial system to benefit from the PIC’s investments.

He warned that these practices could rival the infamous state capture scandal, saying the situation called for urgent parliamentary scrutiny and executive intervention. “Public servants’ pensions are being placed at risk,” Holomisa wrote, urging Parliament to investigate questionable transactions and potential conflicts of interest within the PIC.

The Bank In Question

When asked to name the financial institution involved, Holomisa identified Standard Bank, accusing it of advising the PIC on risky deals while simultaneously benefiting from them.

According to Holomisa, the bank’s role as both adviser and participant in key transactions including those involving the Government Employees Pension Fund (GEPF) created an unfair imbalance. He added that these actions demand a closer probe into Standard Bank’s long-standing relationship with the PIC.

SCOPA Steps In

Zibi confirmed that SCOPA would write to the PIC requesting detailed information on the allegations. “Where there are claims of inflated asset prices, we will request independent valuations to verify whether the prices paid were justified,” he said.

The move follows a series of revelations linking Standard Bank and the PIC through multiple high-value transactions. These include the PIC’s 25% stake acquisition in SA Home Loans half-owned by Standard Bank at the time and a R9 billion financial facility financed with public pension money.

A History Of Controversial Deals

Standard Bank’s partnership with the PIC stretches back decades. Beyond the SA Home Loans deal, both entities have co-invested in projects such as Curro’s Meridian schools and various corporate bond issuances.

In 2025 alone, Standard Bank acted as the joint global coordinator for Anglo American’s share selloff in Valterra and led African Bank’s R700 million social bond issuance both deals involving PIC-linked investments.

Bank Defends Its Conduct

Responding to the claims, Standard Bank spokesperson Ross Linstrom said the institution operates under a strict Conflict of Interest Management Policy aligned with South African financial laws.

“Standard Bank applies rigorous due diligence and governance protocols when advising clients,” Linstrom stated. He added that the bank works transparently with regulators and adheres to legislation such as the Banks Act and the Financial Sector Regulation Act.

PIC And Treasury Respond

The PIC, meanwhile, dismissed Holomisa’s claims as “false and malicious,” announcing it would submit detailed reports to the Presidency and Parliament to refute the allegations.

However, former PIC CEO Dr Dan Matjila countered that questionable transactions have long plagued the institution. “These deals have been happening for years,” he said, alleging that certain individuals are being protected while attention is diverted elsewhere.

Experts Weigh In

Political analyst Zakhele Ndlovu suggested that the PIC’s executives may be either negligent or complicit. “It looks like a strategy to fleece the PIC,” he said. Economist Dr Sean Muller added that the problem lies in the structure of public-private partnerships: “The public takes the risk while the private sector reaps the rewards.”

Ongoing Governance Turmoil

The allegations come amid internal turmoil at the PIC, which recently suspended its Chief Investment Officer, Kabelo Rikhotso, following a whistleblower report. The case revived concerns that systemic governance issues identified in the 2020 Mpati Commission remain unresolved.

The PIC, managing more than R3 trillion in assets, is mandated to act in the best interest of its clients mostly government employees and pensioners. Yet, critics argue that the institution’s leadership has failed to maintain transparency and accountability.

Oversight And Accountability

The Financial Sector Conduct Authority (FSCA) confirmed awareness of the allegations but said it does not oversee the PIC’s investment decisions directly. The South African Reserve Bank declined to comment, while the National Treasury shared the PIC’s statement vowing to address Holomisa’s claims through official channels.

Meanwhile, opposition figures like Build One SA leader Mmusi Maimane have called for stronger parliamentary oversight, saying, “The PIC manages the pensions of teachers, nurses, and police officers this is not just about numbers, it’s about people’s futures.”

{Source:IOL}

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