All board members at PIC resign

The members are citing instability at the firm following graft allegations against at least four directors.
The board members notified finance minister, Tito Mboweni by letter, of their decision to resign. Picture: Moneyweb

The entire board of South Africa’s state-owned state pension fund, the Public Investment Corporation (PIC), resigned on Friday, citing instability at the firm after graft allegations against at least four directors.

The PIC, which has around R2 trillion ($150 billion) of civil servants pensions under its custody and is Africa’s biggest pension fund, is facing a judicial inquiry on corporate governance after a small opposition party alleged that former chief executive Dan Matjila had misused funds and made careless investment decisions.

The allegations against Matjila, a board member, were followed this week by an anonymous whistle blower who sent an email implicating three other board members including acting CEO Matshepo More as well as the board’s chairman and deputy finance Minister Mondli Gungubele in impropriety.

Matjila and Gungubele have denied any wrongdoing. More could not be reached for comment.

The board said the allegations were “unbearable to us as individuals” in a letter addressed to Finance Minister Tito Mboweni asking him to release them from their positions.

“Our assessment is that this may not be the end,” the letter signed by 11 directors said. “There is clearly a concerted effort to discredit the board of directors to an extent that there cannot be any credibility to the work that is executed in fulfilling its fiduciary responsibilities.”

The spokesman for the Finance Ministry, which oversee the PIC, did not immediately respond to request for comment.  

Click here to view the resignation letter.

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The rats are fleeing a sinking ship.

They are running away because they are guilty. Escaping.

In my view, the commission is designed to give the fat and well fed, ANC connected rats, gorged on SA pensioners money, time to make an escape before the rat trap is set and any “prosecutions” take place.

No loss at all. At best incompetent. ..more likely criminal

Such a tainted board needs to be fired – not resign.

Follow the deals and the money

How much of the R2 trillion is left is the question that needs asking.

End of comments.

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