Cosatu calls for greater transparency from the PIC regarding investment disclosures

Cosatu has called for greater transparency from the Public Investment Corporation (PIC) regarding its investment disclosures, urging the entity to make all relevant information about both listed and unlisted investments publicly accessible. According to Cosatu’s parliamentary coordinator, Matthew Parks, the PIC should comply with the requirements set forth by the PIC Act, ensuring that such data is available on its website and included in its annual reports. This call comes amid growing concerns over the PIC’s governance practices following recent allegations involving former CEO Patrick Dlamini. The controversy began with the sudden suspension of Dlamini, who was placed on precautionary leave over allegations related to his role in a PIC investment in Lanseria Airport more than a decade ago. The Financial Services Conduct Authority (FSCA) subsequently launched an investigation into potential governance failures at the PIC. However, it emerged that the FSCA had attempted to address similar concerns years prior, only to be met with silence from the PIC. This history of ignored regulatory inquiries has fueled further criticism of the PIC’s transparency and accountability mechanisms. In response to the ongoing scrutiny, PIC chairman David Masondo addressed staff, acknowledging a “miscommunication and misunderstanding” between the PIC management and the FSCA. He explained that the board had not been informed of previous requests for documentation related to the whistleblower matter involving Dlamini. Upon learning of the situation, Masondo said the chairperson promptly acted by providing the necessary documents and committing the board’s full support to the investigation. Regarding the PIC’s unlisted investments, which have drawn considerable public attention, Masondo noted that many of the transactions under review by the Mpati Commission predate the current leadership. He revealed that the PIC holds investments in 150 unlisted companies, with 39 of these being legacy investments currently undergoing restructuring or distress management. While the unlisted portfolio constitutes just 4.5% of the PIC’s assets under management, the distressed and turnaround portions account for only 1.7% of the unlisted holdings and less than 0.1% of the PIC’s overall investments. Despite these challenges, Masondo highlighted that the PIC has successfully recovered R10 billion from its R19 billion debt book and is actively pursuing legal avenues to reclaim the remaining R9.3 billion. He emphasized that the unlisted portfolio continues to generate value, with a 3.6% increase recorded during the period under review. Cosatu’s demands for greater transparency reflect broader concerns about the PIC’s adherence to its investment mandate and its willingness to accept public oversight. Parks reiterated that ensuring all PIC investments are subject to public scrutiny is crucial for maintaining accountability and upholding the integrity of the institution. As the FSCA investigation unfolds and the PIC continues to navigate its complex investment landscape, the pressure for greater openness will likely intensify.