South Africa’s state-owned asset manager sitting on R3 trillion suspends its CEO

The Public Investment Corporation (PIC) confirmed that its board has resolved to place the company’s CEO, Patrick Dlamini, on precautionary suspension.

The PIC is South Africa’s largest asset manager, with R3 trillion in assets, and manages the Government Employees’ Pension Fund (GEPF).

The decision to suspend Dlamini was made in line with the PIC’s whistleblower policy and came after a report filed last month called for an independent investigation into Dlamini’s conduct.

The PIC’s board said it believes it is necessary to provide Dlamini sufficient space and time to respond to the allegations of impropriety against him.

“In line with applicable labour legislation and internal PIC policies, the precautionary suspension is intended to ensure a fair, objective, and independent investigation into these allegations,” it said.

“The suspension does not, in any way, constitute a finding nor is it a pronouncement of any wrongdoing on the part of the CEO.” 

The PIC said it is finalising interim arrangements for the acting CEO position and will make further announcements in due course.

The PIC also announced that August Van Heerden will cease serving as the company’s Acting Chief Investment Officer.

This decision, the company said, was made in light of the Government Employees’ Pension Fund’s resolution, the PIC’s biggest client.

Leon Smit, the PIC’s current Head for Fixed Income in Listed Investments, will be appointed as Acting CIO. 

“Mr Smit is a highly accomplished investment professional with more than three decades of experience in fixed income, treasury management and financial markets,” the PIC said.

Smit joined the PIC in August 2000 and currently leads the management of listed fixed income investments and cash flows in accordance with client mandates. 

He oversees the PIC’s listed fixed income dealing activities on the domestic market and drives investment performance while maintaining prudent risk management.

“The Board remains committed to the highest standards of governance and institutional integrity,” the PIC said.