Another twist at South Africa’s R3.6 trillion asset manager
A South African court ruled that the suspension of Patrick Dlamini as chief executive officer of the Public Investment Corp. was unlawful and ordered that he be reinstated.
The PIC’s board suspended Dlamini last month pending the outcome of an investigation into governance and procurement processes at the fund. The CEO challenged his ouster in court.
The ruling caps weeks of turmoil at the R3.6 trillion fund manager.
Dlamini’s suspension exposed a rift between Deputy Finance Minister and then-PIC Chairman David Masondo and his boss, Finance Minister Enoch Godongwana, who said he had not been consulted on the dismissal.
Masondo later resigned under pressure from Godongwana.
His departure led to the appointment of Deputy Planning, Monitoring and Evaluation Minister Seiso Mohai as board chairman.
“This judgment vindicates the actions taken by National Treasury and the Cabinet to restore governance at South Africa’s largest asset management institution,” Godongwana said in a statement Tuesday.
“These actions were both good and necessary, triggered in part by the hasty removal of Mr. Dlamini without due consultation and process.”
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