Last Wednesday, buried halfway down on page six of a post-Cabinet press statement, South Africans were informed in a single line that all but one member of the Board of the Public Investment Corporation (PIC) had been replaced. Ten new non-executive directors were appointed, with no explanation and no public consultation.
It is extraordinary that a board which oversaw the growth of PIC assets from R2 trillion to almost R3.9 trillion was suddenly and quietly replaced. To make matters worse, media reports this week confirm that only one of the ten new directors has any asset management experience. This raises red flags about the capacity of the new board to safeguard trillions of rands in public funds.
The clean sweep was deliberately done quietly, which raises the important question of who is on the new board entrusted with nearly R3.9 trillion in public servants’ pensions and savings?
The PIC is not another run-of-the-mill institution. It is South Africa’s state asset manager. Its governance affects every South African, but most directly the millions of workers whose pensions are held, including teachers, nurses, police officers, and civil servants.
In this light, BOSA Leader Mmusi Maimane has written to Finance Minister Enoch Godongwana, demanding full transparency on:
- The rationale and legal basis for prematurely terminating the previous board’s extended term.
- The role of undisclosed psychometric testing in the removal of directors.
- The risks considered before wiping out the board’s institutional memory.
- Allegations of corruption and procurement irregularities within the Public Servants Association (PSA).
This type of behaviour reflects a wider culture, far beyond the PIC. The absence of accountability in how boards of our state institutions are appointed and dismissed is a systemic crisis. South Africa has around 700 state-owned enterprises and entities, yet the power to appoint and fire boards rests almost entirely in the hands of a single minister. It is crucial a new way is established to appoint boards that ensures competence, independence, and public trust.
The sudden purge at the PIC risks financial instability and erodes confidence in the integrity of the state’s largest asset manager. BOSA calls on the Minister of Finance to explain these decisions openly and urgently to the South African people.
Media Enquiries: Roger Solomons – BOSA Spokesperson – 072 299 3551