The board of the Public Investment Corporation (PIC) says it welcomes the Financial Sector Conduct Authority's (FSCA's) ongoing supervisory engagement and confirms that it has furnished the FSCA with the information and documentation it requested on the whistleblower report and associated governance process.

The FSCA on July 14 announced that it would conduct an investigation into developments at the PIC in terms of Section 135 of the Financial Sector Regulation Act.

The FSCA said it had become "increasingly concerned" by recent developments at the PIC, particularly those relating to governance, leadership stability, transparency and the potential impact of these developments on the integrity and confidence in one of South Africa’s important financial institutions.

"The PIC occupies a unique and critically important position within South Africa’s financial system. As the country’s largest asset manager and custodian of substantial public sector savings, it bears heightened responsibilities to maintain the highest standards of governance, integrity, accountability and conduct. Events over recent months raise serious questions as to whether these standards are being consistently upheld.

"The FSCA takes note of the developments at the PIC and the allegations made in recent media articles concerning whistleblower reports and the suspension of the PIC's CEO," it stated.

The PIC on July 13 announced that CEO Patrick Dlamini had been placed on precautionary suspension to give him sufficient space and time to respond to allegations of impropriety against him that were submitted to the board in a whistleblower report last month.

The PIC also resolved that August Van Heerden would cease to serve as acting chief investment officer and that that role would now be held by PIC head for fixed income in listed investments Leon Smit. 

In response, the PIC board says it believes strong regulatory oversight is a hallmark of a healthy democracy and resilient financial system. It adds that institutions such as the FSCA and the PIC have a shared responsibility to safeguard the retirement savings of millions of South Africans through sound governance, accountability and transparency.

Since their respective appointments, the previous and current PIC boards have prioritised strengthening governance and implementing the recommendations of the Mpati Commission.

In answering parliamentary questions in 2024 and 2025, Finance Minister Enoch Godongwana has consistently said that the PIC has completed the implementation of the recommendations of the Mpati Commission report into allegations of impropriety at the PIC, which is aimed at addressing the governance, operational and ethical deficiencies within the entity which were identified by the commission.

“The implementation of the recommendations has rectified the deficiencies identified by the commission,” the Minister has said.

The PIC board states that, while challenges remain, the corporation has made significant progress in strengthening its governance framework and oversight processes. The board says it remains fully committed to cooperating with all regulators and ensuring that governance matters are addressed through independent, credible and transparent processes.

"The board appreciates the FSCA's continued vigilance and looks forward to working constructively with the authority in the interests of maintaining confidence in South Africa's financial sector and protecting the interests of pensioners," the board states.