Scandal rocks Africa’s largest investment fund, PIC, as chairman, board resign

PIC

Africa’s largest investment fund, Public Investment Corporation of South Africa, PIC, has been thrown into crisis as a shattering scandal threatens to tear the company apart.

In the midst of a rising financial scandal, Chairman of PIC, Chairman Gungubele has just led nine board of director members to resign.

The PIC is South Africa’s investment fund for its workers’ pensions.

In the last few days, the PIC has been “destabilized” by a series of claims, including against at least four board members, Chairman Mondli Gungubele said in a letter to Finance Minister Tito Mboweni co-signed by eight other executives, cited by Bloomberg News. “Our assessment is that this may not be the end,” they said, adding that they are prepared to stay on until a new board is appointed.

Africa’s largest fund manager is the subject of an ongoing inquiry into various investment decisions, including in the bonds of Eskom Holdings SOC Ltd. and technology company Ayo Technology Solutions Ltd. In the past year, half of the PIC’s executive committee have been suspended or resigned, including ex-Chief Executive Officer Daniel Matjila.

Last week, the PIC said it would investigate allegations against two non-executive directors and acting CEO Matshepo More, who was not one of the signatories on the resignation letter.

The future of the $150 billion investment fund hangs in the balance as there are no immediate resolution to the matter.