Seiso Mohai appointed new PIC chair as cabinet overhauls board

Cabinet has moved to swiftly stabilise the Public Investment Corporation (PIC) by appointing a new board, amid a leadership vacuum at Africa’s largest asset manager.

Deputy minister in the Presidency for Planning, Monitoring and Evaluation, Seiso Mohai, was appointed the new chair following Finance Minister Enoch Godongwana’s consultations with cabinet this week.

His appointment was confirmed by Minister in The Presidency Khumbudzo Ntshavheni at a media briefing on Thursday. He replaces former deputy minister of finance David Masondo, who became the sixth person to step down from the PIC board in as many days.

Read:
Masondo out – deputy finance minister quits as PIC chair
PIC intervention: What can we expect from Godongwana’s urgent general meeting on Monday?

Masondo’s resignation preceded a meeting called by Godongwana, where the board was tipped to be dissolved – a first for the PIC.

It’s understood Masondo’s decision to step down has rendered Godongwana’s summons moot but not enough to avoid an overhaul of the PIC’s leadership structure.

The state-owned entity, which oversees R3.7 trillion of government pensions, has long faced challenges linked to governance failures and corruption. It’s board is traditionally chaired by a deputy minister in the economic cluster.

In addition to Mohai, other new board members include:

Patience Nqeto
Lebogang Mokgabudi
Swazi Tshabalala
Ouma Rasethaba
Vivien McMenamin
Moipone Ramoipone
Itani Mafune

PIC turnaround

Prior to his resignation last week, Masondo had made public assurances about the asset manager’s stability and commitment to strong governance.

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In an interview with broadcaster Radio 702 on Monday, the PIC’s acting CEO Batandwa Damoyi doubled down on those assurances.

“The focus is to ensure that the portfolio management is continuing and we want to support our employees because, as you can imagine, they have been very uncomfortable with all that has been happenning at the leadership stage.

“But the PIC is not about one individual, it’s about the full institution. We believe very soon it will be turned around.”

Damoyi, who is also CFO, says she’s not vying for the PIC top job.

“My focus is not on the title. My task right now is stewardship and that is to keep the institution steady and to hand it over in good order when the board and shareholders conclude on this process.

“Talking about acting leaders who then start campaigning stops being helpful. I have a full-time job and I intend to go back and do that well when all of this is done.”

Read:
Batandwa Damoyi appointed as acting PIC CEO
Godongwana reviews PIC CEO suspension

Meanwhile, suspended CEO Patrick Dlamini is set to challenge his suspension.

Indictment on governance at public institutions

The Institute of Directors in South Africa (IoDSA) says the unravelling of the PIC should prompt wider discussion on public institution leadership.

IoDSA says the deepening crisis at the PIC presents an important opportunity to reflect on broader governance principles that extend well beyond a single organisation.

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It says the issue raises questions about the independence of the chairperson of a governing body and the competencies expected of those entrusted with leading the boards of institutions that manage assets of significant public importance.

“While enabling legislation may prescribe how appointments are made, good governance requires careful consideration of how governance arrangements support objective decision-making and public confidence,” says Parmi Natesan, CEO of the IoDSA.

Read:
PIC turmoil highlights need for independent board appointments
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Natesan says political appointments should not be regarded as evidence of competence to chair a governing body.

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

“The same standard should apply irrespective of whether appointments are made in the public or private sector.”

As South Africa continues to professionalise directorship and strengthen governance across both the public and private sectors, the institute says greater attention should be given to ensuring that those appointed to chair strategically important institutions possess not only integrity and experience, but also the governance competencies necessary to fulfil the role effectively.

“The current public debate presents an opportunity to elevate the conversation beyond individual appointments.

“Ultimately, good governance depends not only on who serves on a governing body, but on whether those individuals possess the independence, competence and governance capability required to discharge one of the most important responsibilities in public life,” Natesan adds.

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