The African National Congress (ANC) on Friday said it "welcomed" the announcement of a commission of inquiry on the Public Investment Corporation (PIC), saying that it was decisive action by President Cyril Ramaphosa.

National Treasury announced on Thursday that Ramaphosa had agreed to appoint a commission of inquiry into the alleged improprieties at the state-owned fund manager. 

The PIC invests government pensions and handles assets worth about R1.928 trillion. It is one of the biggest known funds on the African continent.

"The ANC believes that the review process of the PIC should not disrupt the institutional stability of the entity while granting an opportunity for the commission to interrogate the PIC’s governance and operating model, possible changes to its Memorandum of Incorporation and investment decision-making framework," the ruling party said in a statement.

"The PIC is entrusted with management of public sector workers’ pension fund, therefore it is  a strategic institution for investment and economic growth."

Terms of reference of the commission will include a review of the PIC’s governance and operating model, possible changes to the PIC's founding legislation and its Memorandum of Incorporation and investment decision-making framework. 

Names of the chair of the commission and the supporting team, as well as the detailed terms of reference of the commission, are yet to be announced.