Masondo reassures PIC staff amid governance turmoil

David Masondo, board chair of the Public Investment Corporation (PIC), has reassured employees that the entity remains stable and committed to strong governance.

He addressed staff following intense public scrutiny this week, during which PIC CEO Patrick Dlamini was suspended, two non-executive board members resigned, and the Financial Sector Conduct Authority (FSCA) announced it would launch an investigation into the embattled state-owned asset manager.

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Speaking to staff during a Town Hall meeting on Thursday, 16 July, Masondo, who is also deputy minister of finance, invited employees to ask difficult questions.

He committed to answering them transparently, while noting that certain matters remain subject to legal processes.

CEO suspension ‘precautionary’ 

A key focus of the discussion was the precautionary suspension of Dlamini.

Masondo stressed that the suspension does not constitute a finding of guilt, explaining that the board acted on independent legal advice from Senior Counsel to protect the integrity of the investigation and ensure a fair process.

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He said the board could not ignore serious allegations placed before it, adding that failing to act would have undermined its governance responsibilities to safeguard the retirement savings of millions of South Africans.

Unlisted portfolio

Responding to concerns about the PIC’s unlisted investment portfolio, Masondo said many of the investments scrutinised by the Mpati Commission were legacy transactions that predated the tenure of the current leadership.

He noted that the unlisted portfolio accounts for 4.5% of the PIC’s assets under management, while distressed and turnaround investments represent less than 0.1% of the corporation’s total investments.

Masondo said the PIC has recovered R10 billion of its R19 billion debt book and is pursuing legal processes to recover the remaining R9.3 billion.

The unlisted portfolio also grew by 3.6% during the financial year to the end of March 2026, while the 2022 Unlisted Investments Mandate achieved a 16% internal rate of return, outperforming its benchmark, he said.

He further highlighted that the Government Employees Pension Fund (GEPF) lifted its moratorium on direct property investments on 6 July 2026.

Full cooperation with FSCA

On the FSCA inquiry, Masondo said the board had not been aware that earlier requests for information relating to a whistleblower matter had been made to management.

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Once the board became aware of the issue, he said it immediately provided the requested documentation and committed its full cooperation to the regulator.

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Masondo also clarified that there had been no suspension of acting chief investment officer August van Heerden.

According to Masondo, Van Heerden was serving in an acting capacity and the GEPF, under the Investment Management Agreement, did not approve his appointment as a key investment official.

To remain compliant with contractual obligations, the board appointed Leon Smit as acting chief investment officer with the GEPF’s support, ensuring continuity in investment leadership.

Masondo also confirmed that the board referred a PwC forensic report to the Special Investigating Unit after receiving legal advice, saying the board remained guided by the law in all its decisions.

He concluded by encouraging staff not to allow speculation or misinformation to define the institution’s work.

“The Corporation’s fiduciary responsibility to millions of public servants remains unchanged,” said Masondo.

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