South Africa’s Cabinet has moved to restore stability at the Public Investment Corporation (PIC) by appointing a new board and naming Deputy Minister in the Presidency for Planning, Monitoring and Evaluation Seiso Mohai as chair of Africa’s largest asset manager.

Mohai’s appointment follows consultations between Finance Minister Enoch Godongwana and Cabinet after a leadership crisis at the state-owned investment manager triggered a wave of board resignations.

Minister in The Presidency Khumbudzo Ntshavheni confirmed the changes at a media briefing on Thursday, saying Mohai would replace former Deputy Finance Minister David Masondo, who resigned last week after serving as PIC chair.

Masondo became the sixth board member to step down within days, shortly before a meeting convened by Godongwana where the PIC board was expected to face possible dissolution, a move that would have been unprecedented for the institution.

The resignation ended the immediate need for that intervention but did not prevent a broader restructuring of the PIC’s leadership.

New board tasked with restoring confidence

The PIC, which manages about R3.7 trillion ($224.3 billion) in government pension assets, has faced years of scrutiny over governance concerns, leadership disputes and allegations of misconduct.

Alongside Mohai, Cabinet appointed Patience Nqeto, Lebogang Mokgabudi, Swazi Tshabalala, Ouma Rasethaba, Vivien McMenamin, Moipone Ramoipone and Itani Mafune to the new board.

Before his departure, Masondo had repeatedly defended the institution’s stability and commitment to governance reforms.

Acting CEO and Chief Financial Officer Batandwa Damoyi said the PIC’s priority remained maintaining operations and supporting employees during the leadership transition.

“The PIC is not about one individual, it’s about the full institution,” Damoyi said, adding that management’s responsibility was to keep the organisation steady until a permanent leadership structure was in place.

Damoyi also dismissed speculation that she was seeking the permanent CEO position, saying her focus remained on ensuring a smooth handover.

“My task right now is stewardship — to keep the institution steady and hand it over in good order when the board and shareholders conclude the process,” she said.

The PIC’s leadership challenges intensified after CEO Patrick Dlamini was suspended pending an investigation into allegations raised by a whistleblower. South Africa’s financial regulator has also launched a separate governance review, while Dlamini is expected to challenge his suspension.

Governance questions extend beyond PIC

The Institute of Directors in South Africa (IoDSA) said the crisis highlights wider concerns about leadership standards at public institutions.

IoDSA CEO Parmi Natesan said the situation should encourage debate about board independence, experience and the qualifications required to oversee organisations managing assets of national importance.

“Chairing one of South Africa’s most significant public institutions requires specialised governance capabilities developed through experience, training and the application of sound governance principles,” Natesan said.

She added that political appointments should not automatically be viewed as proof of suitability for board leadership roles.

Mohai takes charge of century-old institution

Mohai, a member of the African National Congress from the Free State, has served as deputy minister of planning, monitoring and evaluation since July 2024.

He previously served as Chief Whip of the Majority Party in the National Council of Provinces between 2014 and 2024, and held roles including chairperson of the Select Committee on Appropriations.

Established in 1911 as the Public Debt Commissioners, the PIC was converted into a corporation in 2005 under the Public Investment Corporation Act.

The asset manager remains one of Africa’s largest investment institutions, with holdings spanning infrastructure, renewable energy, property, agriculture, healthcare and small businesses.