Inquiry to cast a wider net on PIC’s conduct
• Commission has a broader scope and is empowered to probe any matter relevant to its work
The commission of inquiry into the Public Investment Corporation (PIC), which will begin sitting on Monday, will have a wider scope than initially believed and is empowered to investigate any matter relevant to its work.
The commission was established by President Cyril Ramaphosa in October following ongoing allegations of impropriety at the PIC.
The corporation, which is the biggest and most influential investor in the country, manages government pension and other funds worth about R2-trillion.
At the time the commission was established in 2018 there was widespread criticism that the narrow scope would prevent it from getting to the bottom of events at the PIC.
The broader scope will allow the commission to look at deals that have not made it into the public eye or that took place before 2017.
Over the years the PIC’s unlisted portfolio has become an important source of funding for black entrepreneurs, fuelling allegations that deal-making is influenced by political connections and considerations. There has also been wide speculation that deal-making has been used to channel funds to the ANC.
The PIC board accepted the resignation of Dan Matjila as CEO in November.
CFO Matshepo More will act as CEO until a permanent appointment is made.
The terms of reference say that the commission will inquire and make findings on whether certain “transactions contravened PIC policy or resulted in any undue benefit for any PIC director or employee” and whether “any PIC director or employee used his or her position to improperly benefit another person”.
The role of the PIC board will also be probed, while internal matters ranging from the treatment of whistle-blowers to alleged discrimination in remuneration policy are included for investigation.
Much of the terms of reference relate to events in 2018 when several staff parted ways with the PIC or were fired in the wake of the aggressive pursuit of those believed to be behind anonymous whistle-
blower reports, which alleged misconduct by Matjila.
The terms of reference appeared to restrict the inquiry to events that occurred between 2015 and 2018.
The transactions that would come under scrutiny were those that featured in press reports in 2017 and 2018, the terms of reference also stated.
But at its first meetings, the commission concluded on the basis of its reading of the terms of reference that it is authorised to cast its net as wide as necessary.
The broader scope is confirmed in a letter from the commission to PIC employees last week, in which it states: “While the commission has been requested to focus on the period 1 January 2015 to 31 August 2018, the commission is expressly authorised to investigate and make findings on any other PIC-related matter on the condition that the deadline of 15 April (2019) is met.”
Employees wishing to provide information to the inquiry were urged to contact evidence lead advocate Jan Lubbe.
The commission has already asked the PIC board to provide detailed reports on nine recent transactions: the investment in the Steinhoff BEE vehicle headed by Jayendra Naidoo, Lancaster 101; three deals associated with Iqbal Survé, involving Independent Media, Ayo Technologies and Sagarmatha (in which the PIC did not invest in the end); Texan oil firm Erin Energy, which is associated with Nigerian ANC connection Kase Lawal; Total’s BEE investor Tosaco; VBS Mutual Bank; S&S Refineries, a transaction with which the son of former finance minister Nhlanhla Nene was associated; and MST, a provider of mobile clinics.
The commission is headed by judge Lex Mpati, assisted by former Reserve Bank governor Gill Marcus and accomplished investment banker Emmanuel Lediga.
It must report to Ramaphosa by April 15, but as it has barely begun its work, it is likely to request an extension.