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South Africa’s Public Investment Corporation (PIC) has appointed Chief Financial Officer Batandwa Damoyi as Acting Chief Executive Officer following the precautionary suspension of CEO Patrick Dlamini, while financial regulators intensify scrutiny of governance practices at Africa’s largest asset manager.
South Africa’s Public Investment Corporation (PIC) has appointed its Chief Financial Officer, Batandwa Damoyi, as Acting Chief Executive Officer following the suspension of Patrick Dlamini, as the institution faces an expanding governance investigation.
The appointment, announced on Wednesday, is intended to ensure leadership continuity while an independent investigation examines whistleblower allegations that prompted Dlamini’s precautionary suspension earlier this week.
The PIC emphasised that the suspension does not constitute a finding of wrongdoing, and no details of the allegations have been disclosed publicly.
The leadership transition comes after South Africa’s Financial Sector Conduct Authority (FSCA) confirmed it has opened a formal investigation into the state-owned asset manager.
In a statement issued on Tuesday, the regulator cited concerns relating togovernance, leadership stability, transparency and institutional oversight.
The FSCA said recent developments had raised “serious questions” about whether the PIC continued to meet the standards of governance, accountability and integrity expected of one of Africa’s largest institutional investors.
The PIC manages more than 3 trillion rand (approximately US$183 billion)in assets on behalf of public sector clients, including its largest client, theGovernment Employees Pension Fund (GEPF).
Batandwa Damoyi joined the PIC as Chief Financial Officer in April 2024and brings more than 17 years of financial management and leadership experience to the interim role.
A qualified chartered accountant, she will oversee the organisation while the board completes the independent investigation.
In announcing the appointment, the PIC Board expressed confidence in Damoyi’s ability to provide stable leadership during the transition.
“The board is confident that Ms. Damoyi will provide the leadership and stability required to ensure the PIC continues to serve its clients and stakeholders with integrity and excellence,” the corporation said.
The PIC also confirmed it has supplied the FSCA with documents and information relating to both the whistleblower complaint and the governance processes that followed.
In a separate statement, the Board said it welcomed the regulator’s investigation and reaffirmed its commitment to transparency and accountability.
“The board remains fully committed to cooperating with all regulators and ensuring that governance matters are addressed through independent, credible and transparent processes,” it said.
The latest developments add to a series of governance issues that have affected the Public Investment Corporation over the past decade.
In 2020, a judicial commission of inquiry identified weaknesses in governance, oversight and investment decision-making within the institution, leading to a number of recommendations aimed at strengthening accountability.
As Africa’s largest asset manager and the largest investor on the Johannesburg Stock Exchange (JSE), the PIC plays a critical role in South Africa’s financial system.
Consequently, leadership changes and regulatory investigations at the institution are closely monitored by investors, policymakers and pension fund beneficiaries.
The Public Investment Corporation is responsible for managing one of Africa’s largest investment portfolios, making sound governance essential to safeguarding public pension assets and maintaining confidence in South Africa’s financial markets. The appointment of an experienced interim chief executive provides operational continuity while regulators and the Board conduct their investigations. The outcome will be closely watched for its potential implications for institutional governance, investor confidence and the management of public funds.
Source: Reuters
Reporting: Nqobile Dludla.
Editing: Alexandra Hudson and Mark Potter.