South Africa’s largest asset manager under fire

The Hawks are investigating 11 cases from the Public Investment Corporation (PIC), some of which are related to potential corruption and impropriety at South Africa’s largest asset manager.

The Investigating Directorate Against Corruption (IDAC) is also looking into some of these cases, which involve investment deals with two companies, Ascendis Health and Tosaco Energy.

This comes amid a tough year for the asset manager, which has faced several scandals in 2025 related to its deals and investments.

In a recent Parliamentary Q&A, DA MP Andrew Bateman asked Acting Minister of Police Gwede Mantashe about investigations related to the PIC that are currently with the Directorate for Priority Crime Investigations (DPCI).

The PIC is an asset management firm wholly owned by the South African government. Its clients are mostly public sector entities, which focus on the provision of social security.

Among these clients are the Government Employees Pension Fund (GEPF), the largest pension fund in South Africa, and the Unemployment Insurance Fund (UIF).

The PIC ranks amongst the best and most successful asset management firms in the world, and is by far the largest in Africa with over R3 trillion in assets under management.

In response to Bateman’s question, the minister replied that the DPCI, also known as the Hawks, is investigating 11 cases from the PIC.

Three of these cases relate to Section 34 of the Prevention and Combating of Corrupt Activities Act reports.

The other eight cases are from the Judicial Commission of Enquiry into allegations of Impropriety in the Public Investment Corporation, also known as the Mpati Commission.

The Mpati Commission was mandated in 2018 to investigate whether a PIC director or employee had misused their position for personal gain.

This came after growing allegations of corruption and maladministration at the asset manager, particularly involving then-CEO Dr Dan Matjila.

In 2020, the commission released its findings, which revealed serious governance and ethical failures at the PIC.

Notably, it found that Matjila had used his position to improperly influence investment decisions for personal or political purposes. He resigned before the inquiry concluded.

The investigation showed adverse findings on numerous transactions and on actions of various individuals in investment decisions at the PIC.

The commission also highlighted widespread disregard for PIC policies and processes related to transactions by PIC management and certain board members.

However, to date, no prosecutions have been publicly confirmed. 

Ascendis and Tosaco

In his reply, Mantashe also confirmed that the PIC’s dealings with Ascendis and Tosaco form part of the eight cases flagged by the Mpati Commission.

He said the cases regarding these two companies are under the oversight of the IDAC prosecutor. 

The PIC’s involvement with both Ascendis and Tosaco ran almost in parallel, with both presented to the asset manager at virtually the same time.

Both transactions also involved the same B-BEEE company and businessman Lawrence Mulaudzi from Kilimanjaro Capital.

In 2015, the PIC agreed to fund an empowerment consortium to acquire a stake in oil company Total South Africa via Tosaco for around R1.8 billion.

The consortium consisted of two groups, Kilimanjaro Capital and investment company Sakhymnotho.

However, the Mpati Commission revealed that the consortium acquired the shares for R1.7 billion, not the R1.8 billion approved by the PIC. 

The additional R100 million allegedly went towards “transaction fees”, but this was not brought to the attention of the PIC’s relevant committees for approval.

The commission found that this transaction was one where impropriety occurred because of poor governance at the PIC.

It further found that there was pressure from PIC executives, including former CEO Matjila, to merge the two groups that formed part of the consortium.

For the Ascendis deal, the PIC approved around R100 million to fund the purchase of Ascendis shares. In this case, Kefolile Health Investments was the investment vehicle.

However, the commission found that this R100 million was not used to purchase Ascendis shares, but rather added to the transaction fees paid to two entities of Mulaudzi.

“Yet again, the Ascendis investment shows the PIC’s weakness, indeed failure to monitor the implementation of the decision and ensure that the funds provided were used as approved,” the commission said.