PIC CEO Patrick Dlamini to resume duties after court overturns suspension 

Patrick Dlamini is set to return as chief executive of the Public Investment Corporation after the Gauteng High Court in Pretoria overturned his suspension, ending a three-week absence from the helm of South Africa’s largest asset manager. 

The court ruled Tuesday that the PIC board did not have the authority to suspend Dlamini and failed to follow the procedures required under the Public Investment Corporation Act and its own internal rules. 

The ruling effectively set aside the board’s decision, which followed allegations of impropriety contained in a whistleblower report submitted earlier this year.

Court finds board acted without approval 

Under Section 6 of the Public Investment Corporation Act, the finance minister, in consultation with the Cabinet, appoints the PIC chief executive. The board is responsible for selecting and recommending a candidate. 

The PIC’s Delegations of Authority also require a proposed suspension of the CEO to be recommended by the Human Resources and Remuneration Committee, initiated by the chair and approved by the finance minister in consultation with the Cabinet. 

“None of these prerequisites were met,” the 10-page judgment said. The board acted alone, without ministerial approval and in breach of its own policies, the court found. 

The suspension was therefore “ultra vires and invalid.” The court also rejected an argument by Public Interest South Africa, which had sought to intervene in the case. The lobby group argued that the board could rely on the PIC’s whistleblower policy to suspend Dlamini. The court disagreed. 

“Whistleblower protections safeguard whistleblowers from retaliation. They do not, however, confer powers of suspension on the board,” it said. The PIC board was ordered to pay Dlamini’s legal costs.

Dispute exposed wider PIC governance tensions 

Dlamini’s suspension had deepened an already difficult relationship between Finance Minister Enoch Godongwana and his deputy, David Masondo, a former PIC chair. 

Disputes over governance at Africa’s largest asset manager eventually contributed to the resignation of the entire board. The government appointed a new board last week as it sought to restore stability at the institution. 

Godongwana said the court ruling supported steps taken by the National Treasury and the Cabinet to strengthen governance at the PIC. 

In a statement after the judgment, he described the government’s intervention as “good and necessary,” saying it was partly prompted by the decision to suspend Dlamini without the required consultation and due process. 

“As the country’s largest asset manager and the custodian of a substantial portion of public sector retirement funds, trust in its governance is of systemic importance,” Godongwana said.

PIC faces renewed scrutiny 

Founded in 1911 as the Public Debt Commissioners, the PIC became a corporation in 2005 under the Public Investment Corporation Act. It manages more than R3 trillion ($183 billion) and is one of the biggest investors on the Johannesburg Stock Exchange. 

Its investments span infrastructure, renewable energy, property, agriculture, health care and small businesses. 

Dlamini was suspended last month after a whistleblower complaint was made against him. The board said at the time that the precautionary suspension did not amount to a finding of wrongdoing.  The PIC appointed Batandwa Damoyi with immediate effect as acting CEO after Dlamini was suspended.

The court’s decision now clears the way for his return, while the PIC continues to face scrutiny over its governance. 

South Africa’s financial regulator has also opened an investigation into the asset manager, which has faced governance concerns for more than a decade. 

Last week, the Cabinet approved a new PIC chair and seven non-executive directors as the government works to rebuild confidence in the institution and strengthen oversight of the public funds it manages.