Suspension of PIC CEO declared unlawful

A South African court ruled that the suspension of Patrick Dlamini as chief executive officer of the Public Investment Corporation was unlawful and ordered his reinstatement to the position. 

The PIC’s board suspended Dlamini last month pending the outcome of an investigation into the fund’s governance and procurement processes. The CEO challenged his ouster in court. 

The ruling caps weeks of turmoil at the R3.5 trillion fund manager. Dlamini’s suspension exposed a rift between then-Chairman David Masondo and his boss, Finance Minister Enoch Godongwana, who said he had not been consulted about the suspension. Masondo later resigned under pressure from the minister.

His departure led to the appointment of Deputy Planning, Monitoring and Evaluation Minister Seiso Mohai as board chairman. Mohai faces the task of restoring stability at the fund, whose investments span many of South Africa’s largest companies. 

PIC owns stakes in companies including Naspers, MTN, Absa, FirstRand, Investec, Capitec Bank and Standard Bank.