By Janice Kew and Jacqueline Mackenzie
The appointment comes two months after a judicial inquiry recommended sweeping changes to laws that govern the PIC, after it found senior management had flouted internal procedures. President Cyril Ramaphosa ordered the investigation in October 2018, one of a handful he’s instituted to probe alleged graft since taking office after Jacob Zuma’s scandal-marred nine-year rule.
The PIC, which manages more than R2.13trn ($122bn), has had two consecutive acting heads since former CEO Daniel Matjila stepped down in November 2018. Matjila has said he plans to clear his name. The company oversees the pensions of more than 1 million South African state employees.
More than 85% of the PIC’s funds under management are from the GEPF. In December, Sithole said the GEPF has increased scrutiny of the PIC to ensure it has an “adequate line of sight in those areas where there has been concern over what has been done in the past.”
The process to appoint a CEO has taken longer than the fund anticipated. Reuel Khoza, the PIC’s first non-government affiliated chairman, said in July a new CEO should be named in three to six months. While the money manager was long heralded for delivering market-beating returns, the new CEO will have to repair its reputation and may also face pressure from the government to help state-owned companies in financial distress.
