PSA commends PIC Board for Dlamini’s precautionary suspension

The Public Servants Association (PSA) says the Public Investment Corporation (PIC) board’s decision to place Chief Executive Patrick Dlamini on precautionary suspension is a significant step toward restoring accountability. The suspension follows a dispute over the PIC’s investment in Lanseria Airport and allegations that Dlamini appointed PricewaterhouseCoopers (PwC) to conduct a forensic investigation without board approval. Businessman Kagiso Matjila has also filed a R900 million damages claim against Dlamini in his personal capacity. The PIC, which manages about R3.6 trillion in public servants’ pension funds, says the suspension does not amount to a finding of guilt and that Dlamini will be given an opportunity to respond through internal processes. PSA Assistant General Manager Claude Naiker says, “The fact that the majority of the board decided to take these steps, shows how serious the matter is. I think it’s also a significant step towards restoring accountability and confidence in the management of the public servants pension funds. A lot of times we find where there’s no proper governance or oversight, people are earmarked to try and restore the confidence, and it’s just for a publicity exercise so the public can see that something is being done… “As the Public Servants Association, we’ve always advocated and said that no matter what the circumstances are, if any allegations or any irregularities are proffered against any individual, due processes must be followed,” says Naiker. In a statement, the PIC says the board resolved to place Dlamini on precautionary suspension in line with its Whistleblower Policy. The board says the decision will provide Dlamini with sufficient time and space to respond to allegations of impropriety contained in a whistleblower report submitted last month. The PIC says the suspension is intended to ensure a fair, objective and independent investigation and does not constitute a finding or pronouncement of wrongdoing against Dlamini. The board says it is finalising interim arrangements for the appointment of an acting chief executive and will announce those arrangements in due course. The PIC also announced that, following a resolution by its largest client, the Government Employees Pension Fund (GEPF), August van Heerden will cease serving as Acting Chief Investment Officer.