Cabinet expected to announce new board for PIC by Thursday
The South African Cabinet is expected to appoint an interim board for the Public Investment Corporation (PIC) following a wave of resignations and the suspension of its CEO. The instability at the state-owned asset manager, which oversees trillions in pension funds, has raised concerns about systemic economic risk.
Why it matters
The governance crisis at the PIC threatens the stability of South Africa's government pension funds and broader financial market confidence.
The Cabinet is expected to announce an interim board for the Public Investment Corporation (PIC) on Thursday, following its meeting on Wednesday.
The PIC, which manages R3.6 trillion in government pension and other social funds, has been without a board since last week, when directors began to resign following a notice from the sole shareholder representative, Finance Minister Enoch Godongwana, that they would be removed at a shareholder meeting on Monday.
It is also without a CEO after Patrick Dlamini was suspended earlier this month. The PIC has an acting chief investment officer (CIO).
This effectively paralyses the PIC in making investment decisions, as the investment committees that must sign off on large transactions cannot be constituted. Similarly, the absence of a CEO impedes operations.
READ | PIC instability poses ‘systemic risk to the economy’, Godongwana warns
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