Dlamini breaks silence after PIC reinstatement

Chief executive of the Public Investment Corporation, Patrick Dlamini, used his first public address since returning to office to preach accountability and pledged to cooperate with investigations into allegations against him.

Dlamini was reinstated as CEO earlier this week after the Gauteng High Court in Pretoria found that the now-dissolved board of the asset manager acted outside its scope by suspending the executive over a whistleblower report.

The report filed with the board detailed allegations of impropriety. Dlamini took the matter to court, challenging his suspension by the disenchanted board.

The court nullified the former board’s decision, labelling it as lacking authority, since hiring and firing decisions rested with the finance minister, in consultation with the cabinet.

Read:
PIC CEO back at work three weeks after being suspended
Godongwana: Dlamini court victory doesn’t end scrutiny

Although the board backed Dlamini’s return, it stressed that the allegations against him would still be independently investigated.

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“The board shall ensure that allegations against the CEO, in a whistleblower report that was the subject of the High Court litigation, are investigated independently and will follow due processes.”

Watch Dlamini’s full address here. 

CEO speaks

Responding publicly for the first time since the PIC was thrust into disarray, Dlamini said:

“My reinstatement today is a call to intensify accountability.

“The true strength of our organisation lies in our collective commitment to uncompromised integrity and the disciplined execution of our mandate: to generate long-term value for the country and the men and women who trust us to manage their financial future,” he added.

Read: PIC seeks private fixers after governance meltdown

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With the allegations still untested, Dlamini said he would cooperate with any investigation or review into his conduct. He said this is part of efforts to rebuild public trust.

“We will remain guided by the facts, proper oversight by the board and absolute respect for due processes,” he said, echoing the board’s commitment to due process.

In July, the Financial Services Conduct Authority (FSCA) launched its own investigation into the custodian of public funds.

Read: Two directors resign after FSCA launches PIC investigation

While more than 95% of the PIC’s portfolios perform robustly in liquid markets, Dlamini said a forward-looking approach would include assessing the unlisted portfolio and how to improve its performance.

“Please accept my absolute assurance that your funds, investments and state assets are growing in value, they remain secure, stable and managed under strict institutional and governance controls,” Dlamini also said.

The asset manager could soon become the subject of a parliamentary inquiry as well.

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