Mass resignation opens the way for the investigation to continue unimpeded

THE EN MASSE resignation by the board of the Public Investment Corporation (PIC) is widely expected to provide an opportunity for the ongoing investigation to continue without any impediments.

The board presented a joint letter of resignation on Friday after learning – during a scheduled board meeting – that Finance Minister Tito Mboweni had lost confidence in the board and had decided to dismiss it.

While at the cabinet lekgotla, Mboweni, according to sources, was informed about emails sent by a whistle blower making startling allegations of illicit deals amounting to more than R6 billion, implicating at least four board members.

The emails, shared by one James Noko, mentioned PIC chairperson Mondli Gungubele (who is also the Deputy Finance Minister), acting chief executive Matshepo More and board members Sibusisiwe Zulu and Dudu Hlatshwayo.

Mboweni called the PIC chairperson and informed him of his resolve, after which the board held an in-camera meeting and submitted its resignation.

This move has, however, been met with mixed feelings by interested civic organisations, with the National Education, Health and Allied Workers’ Union welcoming the resignation.

“The union holds a strong view that the board’s resignation will provide an opportunity for the ongoing investigation to continue without any impediments.

“Without the board, which might be complicit in improprieties, the judicial commission of inquiry can now focus on performing its duty of unearthing the truth in relation to the corruption and improprieties that have taken place at the state asset manager that has led to it haemorrhaging workers’ hard-earned pension funds,” the union said.

Meanwhile, the National Professional Teachers’ Organisation of South Africa (Naptosa) expressed dismay at the PIC board’s decision to resign en bloc.

“The reasons advanced by the board are difficult to accept. Citing instability and an attack on the credibility of the board, but then through resignation, creating the potential for further instability, does not make sense. “We would have expected the members to show more resolve and not to be destabilised by what is, at this stage, mere allegations of impropriety against certain of them,” Naptosa said.

What is of interest is that a lot of focus is now on Ayo Technologies, which Noko points out in his emails is a smokescreen used by Gungubele, Zulu and More to hide the allegedly illicit transactions they are involved in.

No questions are being raised about the PIC’s interests in Steinhoff International, Harith General Partners, Erin Energy and S&S Oil Refinery, which have all made losses amounting to billions of rand. - Sizwe Dlamini and Adri Senekal De Wet

This article was originally run in The Star on February 4.