Finance Minister Enoch Godongwana has noted the High Court judgment declaring the suspension of Public Investment Corporation (PIC) CEO Patrick Dlamini invalid and unlawful.

In a media statement, the Minister says this judgement vindicates the actions taken by the National Treasury and Cabinet to restore governance at South African’s largest asset management institution.

“These actions were both good and necessary, triggered in part by the hasty removal of Mr Dlamini without due consultation and process,” the statement says.

The Minister underscores that the PIC occupies a critical position within South Africa’s financial system.

“As the country’s largest asset manager and the custodian of a substantial portion of public sector retirement funds, trust in its governance is of systemic importance,” the Minister says.

Newswire Reuters reported on August 4 that the South African High Court had declared Dlamini’s suspension by the PIC board invalid, ordering his reinstatement at the helm of the embattled State asset manager.

The PIC’s board suspended Dlamini last month after a whistleblower complaint against him, though it said at the time that the precautionary suspension did not amount to a finding of wrongdoing.

The High Court ruled that the board did not follow due process in suspending Dlamini, a copy of its decision showed.