PIC board hands in mass resignation following allegations of corruption

The PIC board of directors handed in their resignation after Minister of Finance loses confidence.

On 1 February, the Public Investment Corporation board of directors presented their letter of mass resignation to the Minister of Finance Tito Mboweni

Their resignation was tended after Mboweni received a series of emails detailing alleged corruption among the board members, and declared his intention of dismissing them. 

The board directors who resigned were Mondli Gungubele, Dr Xolani Mkhwanazi, Dr Trubman Goba, Pitsi Moloto, Mathukana Mokoka, Dudu Hlatshwayo, Sandra Beswick, Lindiwe Toyi and Sidusisiwe Zulu

In the letter, the board stated:  

“There is clearly a concerted effort to discredit the board of directors to an extent that there cannot be any credibility to the work that is executed in fulfilling its fiduciary responsibilities.” 

The board continued, saying: 

“We therefore cannot help but view this as an attempt to bring the institution into a state of paralysis. These events have been unbearable to us and have undoubtedly had a negative impact on our professional integrity.” 

They acknowledged that their decision may have repercussions on regulatory and legislative compliance requirement of the PIC, but said they would remain in their positions until the Minister has appointed a new board. “We hope this will be done on an urgent basis,” they said. 

They concluded: 

“We are grateful for having served in this institution. We have learnt, contributed and we believe it’s now time to hand over the baton, in the interest of the PIC, our clients and the country at large.” 

The board’s resignation is expected to deliver an opportunity for the ongoing investigation into allegations of corruption against some of its members and the former CEO Dan Matjila to continue without any impediments.

E-mails containing allegations against board members Sibusisiwe Zulu and Dudu Hlatshwayo were sent by James Noko to Minister Mboweni and copied widely to others, including staff, board members of the PIC and journalists. 

Allegations were made that a romantic relationship existed between Zulu and a man who has been the beneficiary of several BEE transactions funded by the PIC. 

The allegations also claimed that Zulu is involved in a conspiracy with acting CEO Matshepo More and deputy finance minister Mondli Gungubele to capture the PIC.