South Africa’s $219 billion (about R3.6 trillion) Public Investment Corp, custodian of government workers’ pensions, has suspended CEO Patrick Dlamini pending a probe into governance allegations, deepening a leadership crisis that’s seen a revolving door of executives. Finance Minister Enoch Godongwana says the government wasn’t involved in the board’s call, but he and Deputy Minister David Masondo, PIC chairman, are reportedly at odds over the decision. Dlamini was suspended months after ordering a PwC probe into a BEE deal tied to Lanseria airport, which exposed alleged staff wrongdoing. The FSCA is now investigating. CFO Batandwa Damoyi steps in as acting CEO.
By Loni Prinsloo
South Africa’s finance minister said the board of the continent’s biggest money manager briefed the government on a decision to suspend its chief executive officer over alleged governance issues and that it will assess the information after talks with those involved.
The state-owned Public Investment Corp., which oversees $219 billion in South African government pensions, on Monday suspended CEO Patrick Dlamini amid a probe into allegations of impropriety raised in a whistleblower report. The nation’s financial regulator has announced an investigation into governance issues at the fund.
“We have received a briefing from the board and we are evaluating the information and will respond after consultation with relevant stakeholders,” Finance Minister Enoch Godongwana said late Wednesday. “The decision to put the CEO on precautionary suspension was taken by the board — the government is not involved.”
Deputy Finance Minister David Masondo, whose portfolio includes the chairmanship of the PIC, announced Dlamini’s removal earlier this week.
Dlamini’s suspension deepens a sense of crisis at the fund, which has had a revolving door of senior executives over the past decade. The PIC named Chief Financial Officer Batandwa Damoyi as acting CEO on Wednesday.
Godongwana and Masondo — the top two officials in the finance ministry — are at odds over the decision to suspend Dlamini, the handling of a report that he ordered into a controversial investment in a Johannesburg airport, and a whistleblower tip-off that followed, according to people familiar with the matter who asked not to be identified.
There’s also increasing disquiet within the PIC about the number of executives in acting roles and the lack of a CEO, another person with knowledge of the matter said. In addition to suspending Dlamini this week, the PIC board also appointed Leon Smit to replace August van Heerden as acting chief investment officer.
South Africa’s Financial Sector Conduct Authority has become “increasingly concerned” by developments at the PIC and plans to conduct an investigation, it said in a statement late Tuesday.
The PIC welcomed the announcement.
“The board believes that strong regulatory oversight is a hallmark of a healthy democracy and resilient financial system,” it said in a statement on Wednesday.
Dlamini was suspended eight months after ordering an investigation by PwC into a Black economic-empowerment deal linked to an investment in Lanseria, an airport on the northern outskirts of Johannesburg. The report exposed alleged wrongdoing by members of the PIC’s staff, the people said.
A whistleblower report later accused Dlamini of breaching governance limits by ordering the investigation, which led the board to suspend him. Dlamini couldn’t be reached for comment.
The PIC said its board has prioritized strengthening governance and implementing the recommendations of a judicial commission of inquiry in 2020 that recommended sweeping changes to laws governing the PIC after it found senior management flouted internal procedures.
Read more:
Among the commission’s proposals were that the PIC appoint an independent, non-executive chairperson with expertise in financial markets, rather than the deputy finance minister. Some stakeholders are concerned that this specific recommendation hasn’t been implemented, said the people.
The PIC has made progress in strengthening governance and oversight and remains “fully committed to cooperating with all regulators and ensuring that governance matters are addressed through independent, credible and transparent processes,” according to its statement on Tuesday.
© 2026 Bloomberg L.P.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.
Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.
If you prefer WhatsApp for updates, sign up to the BizNews channel here.
