Governance concerns at the Public Investment Corporation (PIC) have intensified after four more non-executive directors resigned ahead of a meeting with Finance Minister Enoch Godongwana, who is expected to consider dissolving the board of the state-owned asset manager responsible for overseeing more than R3 trillion in public sector investments.
The resignations have heightened uncertainty around the leadership of Africa’s largest asset manager, raising concerns about governance, oversight and investor confidence as the PIC continues to manage funds on behalf of the Government Employees Pension Fund (GEPF) and other state institutions.
The latest departures follow the resignations of two other board members last week, bringing the total number of directors to step down to six in just over a week. Only five members now remain on the 11-member board.
The governance crisis follows the suspension of Chief Executive Officer Patrick Dlamini and Chief Investment Officer August van Heerden after allegations contained in a whistle-blower report.
Finance Minister Enoch Godongwana has reportedly called a shareholders’ meeting for 27 July to consider dissolving the board and restoring stability at the institution.
The Financial Sector Conduct Authority (FSCA) has also launched an investigation into governance at the PIC, adding further scrutiny to an institution that plays a central role in South Africa’s financial markets.
As custodian of more than R3 trillion in assets, the PIC is a key institutional investor in companies listed on the Johannesburg Stock Exchange and manages pension savings on behalf of millions of South African public servants. Market participants will be watching closely for any governance changes that could influence the organisation’s strategic direction and investment decisions.