South Africa\u2019s deputy finance minister quit as the chairman of a state-owned firm that oversees roughly R3 trillion of government pensions, days before he faced being removed from the post.<\/p>\n\n\n\n
\u201cAfter careful reflection, I have decided to resign as chairperson of the board of the Public Investment Corp.,\u201d David Masondo said in a statement on Thursday. <\/p>\n\n\n\n
\u201cI do so in the interests of the Republic of South Africa, the continued stability of the PIC, and the confidence of the millions of South Africans whose savings are entrusted to this institution.\u201d<\/p>\n\n\n\n
Masondo\u2019s exit compounds perceptions of a crisis at Africa\u2019s biggest fund manager. <\/p>\n\n\n\n
It comes a week after he suspended PIC Chief Executive Officer Patrick Dlamini pending the outcome of an investigation into governance and procurement processes at the fund.<\/p>\n\n\n\n
At least six non-executive directors of the PIC\u2019s 11-member board have resigned in the past week. <\/p>\n\n\n\n
Dlamini\u2019s dismissal exposed a rift between Masondo and his boss, Finance Minister Enoch Godongwana, who said he wasn\u2019t consulted about the CEO\u2019s suspension by the PIC board.<\/p>\n\n\n\n
Godongwana this week called a board meeting for July 27, at which Masondo and the PIC\u2019s non-executive directors potentially faced removal. <\/p>\n\n\n\n
Masondo said he and the board acted collectively in good faith, based on sound legal advice and in accordance with the principles of good governance, and that he remained confident that the decisions they took were correct.<\/p>\n\n\n\n
\u201cThe minister of finance has recognised that, in performing my duties, I acted with integrity and in good faith,\u201d he said. <\/p>\n\n\n\n
\u201cThroughout my tenure, I sought to discharge my fiduciary responsibilities without fear or favour.\u201d<\/p>\n\n\n\n
\u201cIn this instance, my actions were guided by the imperative to protect and safeguard the funds entrusted to the PIC.\u201d<\/p>\n\n\n\n
The PIC\u2019s huge asset base \u2014 with significant minority stakes in most of South Africa\u2019s biggest companies \u2014 gives it considerable influence over the country\u2019s corporate landscape.<\/p>\n\n\n\n
It has significant minority holdings in most of the country\u2019s top companies, including more than a fifth of technology giant Naspers and telecommunications firm MTN, and about 15% of banks Absa, FirstRand, Investec, Capitec, and Standard Bank.<\/p>\n","protected":false},"excerpt":{"rendered":"
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