The Public Investment Corporation (PIC) has expressed approval for the Cabinet's decision on forming a new board of directors. This step is viewed as an important phase in restoring corporate governance, institutional stability, and public trust in South Africa's largest asset manager.
New PIC Leadership
The appointment was announced by Minister in the President Humbudzo Ntshavheni during a media briefing following the Cabinet meeting in Pretoria on Thursday. According to this announcement, Deputy Minister in the President for Planning, Monitoring and Evaluation, Seiso Mohai, will take up the post of Chairman of the PIC board of directors.
Mohai takes over leadership at a critical time for this state asset manager, which oversees assets worth more than R3.6 trillion on behalf of the Government Employees Pension Fund (GEPF), Unemployment Insurance Fund (UIF), and other public sector clients.
Expansion of the Board Composition
The Cabinet also approved the appointment of seven additional non-executive directors to the board: Patience Ngeto, Lebogang Mokgabudi, Advocate Gatlelane Ouma Rasetaba, Vivienne MacMenaim, Moipone Ramopone, Bajabulile Swazi Tshabalala, and Itani Mafune. In its statement, PIC noted that the appointment of eight non-executive directors marks significant progress in strengthening governance within the corporation.
Comments from PIC Management
Batandwa Damoyi, Acting CEO of PIC, welcomed the government's swift action in establishing the new board. She stated that PIC appreciates the urgency with which the Minister of Finance, Mr. Enoch Godongwana, and the Cabinet took steps to form the new Board, which will provide much-needed organizational stability.
Damoyi emphasized that management is ready to cooperate closely with the new board as it fulfills its oversight functions. PIC management intends to work constructively with the Board to restore public trust and assure all PIC clients that their pension savings and social security funds continue to show steady growth. The immediate priority is ensuring a smooth transition process for all new board members so they can immediately commence their oversight duties.
Background to the Changes
These appointments followed the resignation of former PIC Chairman and Deputy Minister of Finance David Masondo last week. His departure came after reports of deteriorating relations between him, Godongwana, and the suspended PIC CEO Patrick Dlamini. Masondo's resignation occurred shortly before a shareholders' meeting organized by Godongwana, where he was reportedly planning to remove him and other non-executive directors.
Mohai now leads an institution that has faced persistent governance issues in recent years, including the implementation of reforms resulting from the PIC Inquiry Commission. PIC stated that the new board composition brings together experience and knowledge that will help the organization move to the next stage.
Future Prospects of the Organization
PIC congratulated the newly appointed chairman and board members, expressing hope for their contribution to the organization's leadership in the next phase of strategic implementation and advancing the corporation's mandate in the interests of its clients, stakeholders, and the wider South African public. The corporation stressed that the board appointment comes at a crucial time, as a functioning board plays a key role in proper governance, effective oversight, and prudent management of assets on behalf of PIC clients. The expertise and collective experience of the incoming board will support PIC's commitment to accountability, transparency, and responsible investing.
