Matjila’s life put on hold
Lawyers want ‘harsh’ findings in Mpati report, prejudicial to former PIC boss, expunged
FORMER Public Investment Corporation (PIC) chief executive Dan Matjila has been heavily impacted by remarks, conclusions, findings and recommendations in the PIC’s Commission of Inquiry Report handed down this year.
This is according to Matjila’s lawyers who, in response to questions from Independent Media, said that the impact of the report had taken a significant toll on his personal life and well-being.
“He is facing unwarranted and unmerited scrutiny in the public and professional domain including from the Financial Sector Conduct Authority (FSCA).
“Our client has been unable to return to the work for which he is qualified and has not been able to pursue or secure opportunities in his chosen field.
“His reputation has been unfairly prejudiced,” said Boqwana Burns Attorneys.
Matjila has lodged a court application for a review of the findings of the PIC Commission led by Justice Lex Mpati, which made findings that characterised him as dishonest, evasive, obstructive and as not being a fit and proper person as understood in various financial sector regulations.
His lawyers said recommendations of this nature were prejudicial to Matjila, in both a professional and personal context. The review application, filed in the North Gauteng High Court, sought to remove, expunge and/or delete those remarks, conclusions, findings and/or recommendations from the commission’s report.
“There is absolutely no basis for these conclusions and at worst, none of these were put to the client for his comments. He was called to assist the commission, which he did voluntarily at his own costs, and for him to be ambushed in the report is patently unfair.
“At the outset, we must make it clear that our client has always been, and remains, supportive of the processes to improve the efficiencies of the PIC. It was in this spirit that our client was called to appear and assist the commission which he did with full co-operation,” said the lawyers.
“For the sake of clarity, our client states: ‘The recommendations and findings in the report, which are aimed at improving governance at the PIC to achieve the restructuring and repurposing of the PIC to better meet client mandates, play a role in growing an inclusive economy and achieving sustainability, must remain in the report and should be implemented’.”
The PIC Commission Report, released in March, makes some rather harsh remarks on Matjila, with regard to processes leading to investment decisions at the asset manager.
Boqwana Burns said there was no need to defend those transactions as the facts spoke for themselves. “The validity, compliance, and performance of the transactions in question are dealt with extensively in our client’s statement to the commission.”
The PIC is Africa’s largest asset manager that manages assets for clients, including the Government Employees Pensions Fund, and is regulated by the FSCA in the provision of asset management services. The sole shareholder of the PIC is the State, represented by the Minister of Finance.
In his more than 350-page court document Matjila said the PIC was one of the very few State-owned entities (SOEs) that had not requested a government bailout, but instead had actually paid dividends to the State and received clean unqualified audits from the auditor-general year after year.
The asset manager has been practically the only SOE to have achieved any significant growth over the last 15 years, growing from a mere R377 billion to more than R2 trillion – much of which, was under Matjila’s own watch.
“It has also delivered good returns to its clients, thus satisfying its mandate requirements,” he said.