Matjila quits PIC ‘but not on his terms’

● The Public Investment Corporation (PIC) and its CEO Dan Matjila have parted ways after the asset manager’s board accepted his resignation with immediate effect on Friday, saying this was in the best interests of the organisation and Matjila.

Tensions between the board and Matjila, who has in recent months been at the centre of accusations of impropriety at the PIC, reached a head this week after Matjila’s resignation letter was leaked.

In the letter Matjila offered to resign, but on his own terms, and within five months, which the board refused to agree to. He had given the board until Friday to respond to the letter.

PIC chairman Mondli Gungubele told Business Times: “The board read in the CEO’s letter the declaration of a dysfunctional relationship and took a view that it could not ignore that declaration of a struggling relationship.” He said the board decided to reject Matjila’s terms, including a request to assist in appointing his successor.

Gungubele declined to elaborate further as “this matter might still be contested”.

He added: “The institution has been attacked in several ways and the CEO decides to write that letter in that manner, and that letter continues to contribute to the state of uncertainty in the PIC.”

The board resolved that Matjila’s resignation letter showed his loss of trust in the board and was “a declaration of a serious breakdown”, especially as he was claiming constructive dismissal.

Gungubele said Matjila would leave with all his benefits. “We are going to do a legal consultation to be advised on a dignified and a fair parting with him because we acknowledge the major contribution he has made to the PIC over the years.”

A commission of inquiry into governance at the PIC is imminent.

Gungubele said he did not want to say whether Matjila was central or not to the inquiry. “There are a series of questions about deals and a number of things that are alleged not to have gone well around the work of the PIC. I don’t want to make an assumption that he is central to it.”

Timeslive reported that CFO Matshepo More will be the acting CEO.