Changes at PIC as CEO steps down
Africa’s largest asset manager now prepares to fill vacant key positions
The Public Investment Corporation (PIC), Africa’s largest asset manager, will enter a new era after the sudden departure of chief executive Dan Matjila, with changes to the executive structure and board on the agenda over the next six months.
The PIC manages about R2trillion on behalf of the Government Employees Pension Fund and other government funds.
It is the largest single investor in the JSE and the biggest holder of government bonds.
“The board resolved that in the interest of the PIC and the CEO, we accept his resignation with immediate effect,” it said in a statement at the weekend, the deadline he had given it to accept his terms for voluntarily leaving in 2019.
The PIC has attracted controversy over the past two years over alleged improprieties regarding investments and the conduct of its office-bearers and employees.
Among the most notable was the decision to place R4.3bn in the initial public offering of Iqbal Survé’s Ayo Technologies in December 2017, a price that was regarded by the market as being too high.
Matjila’s departure will herald changes at the PIC with the board also resolving that it will fill the positions of chief investment officer, chief risk officer and COO, which are specified in the memorandum of incorporation.
Since Matjila became CEO in 2014, he has performed the roles of both CEO and chief investment officer. The positions of head of risk and operations had also been downgraded.
The effect had been to concentrate authority in Matjila and CFO Matshepo More, who will act as CEO until a permanent appointment is made.
The board appoints the CEO “with the approval” of the finance minister.
Changes to the board are also imminent.
The terms of three non-executive directors, which expire at the end of November, were extended by finance minister Tito Mboweni on Friday for six months only.
Board members are appointed by the minister of finance.
Matjila will not receive a “golden handshake”, but the board resolved that it would be as generous as possible within legal bounds.
This was in recognition of his contribution to the PIC.
In its statement the PIC said: “Dr Matjila has over the years in various capacities, served the PIC with dignity and distinction. “He has played an integral role in fulfilling the PIC’s vision of meeting and exceeding our clients’ mandates.
“Under his leadership, the PIC has grown from strength to strength and has attracted dedicated and competent employees of world-class calibre.”
Pressure from other quarters could also result in change at the PIC.
A commission of inquiry into governance and various transactions that have attracted media scrutiny is about to begin under judge Lex Mpati.
Parliament is also pushing for changes to the PIC Act, with a bill originating from the portfolio committee on finance and a similar private member’s bill introduced by DA MP David Maynier under discussion.
The proposed amendments will give parliament a role in appointing the chair of the PIC, which would make a recommendation to the minister of finance, and make allowance for trade union representation on the board.
The bills also propose that the PIC disclose all its investments, both listed and unlisted, which has not been a statutory requirement before.
In terms of Maynier’s bill, all directives issued by the minister to the PIC would have to be tabled in the National Assembly and published on the PIC website.
He has played a key role in fulfilling the PIC’s vision of meeting mandates