Ramaphosa sets up commission of inquiry into the PIC

17 October 2018 - 19:42 By Matthew Savides
The commission of inquiry into PIC will be headed by Justice Lex Mpati‚ the former president of the Supreme Court of Appeal‚ assisted by Gill Marcus and Emmanuel Lediga.
The commission of inquiry into PIC will be headed by Justice Lex Mpati‚ the former president of the Supreme Court of Appeal‚ assisted by Gill Marcus and Emmanuel Lediga.
Image: Thapelo Morebudi

President Cyril Ramaphosa has instituted a commission of inquiry into “allegations of impropriety” at the Public Investment Corporation (PIC).

The establishment of the commission was published in Wednesday’s edition of the Government Gazette‚ but Ramaphosa signed the proclamation instituting the commission on October 4.

It will be headed by Justice Lex Mpati‚ the former president of the Supreme Court of Appeal‚ assisted by Gill Marcus and Emmanuel Lediga.

The PIC manages government pension funds‚ among others funds.

According to the Gazette‚ the commission will look into the period from January 1 2015 to August 31 2018.

The commission‚ which has to provide an interim report to Ramaphosa by no later than mid-February next year‚ has been tasked with making findings‚ reporting on and making recommendations on a number of areas‚ including:

  • “Whether any alleged impropriety regarding investment decisions by the PIC in media reports in 2017 and 2018 contravened any legislation‚ PIC policy or contractual obligations and resulted in any undue benefit for any PIC director‚ or employee or any associate or family member of any PIC director or employee at the time;
  • “Whether any findings of impropriety following the investigation in terms of paragraph 1.1 resulted from ineffective governance and/or functioning by the PIC Board;
  • “Whether any PIC director or employee used his or her position or privileges‚ or confidential information for personal gain or to improperly benefit another person; 
  • “Whether measures that the PIC has in place are adequate to ensure that investments do not unduly favour or discriminate against (a) a domestic prominent influential person (as defined in section 1 of the Financial Intelligence Centre Act‚ 2001)‚ (b) an immediate family member (as contemplated in section 21H(2) of the Financial Intelligence Centre Act‚ 2001) of a domestic prominent influential person; and (c) known close associates of a domestic prominent influential person;
  • “Whether there are discriminatory practices with regard to remuneration and performance awards of PIC employees;
  • “Whether any senior executive of the PIC victimised any PIC employees; and
  • “Whether the PIC followed due and proper process in 2017 and 2018 in the appointment of senior executive heads and senior managers‚ whether on permanent or fixed-term contracts.”

A final report must be submitted to Ramaphosa by April 15 2019.

“The Commission may‚ if necessary‚ investigate and make findings and recommendations on‚ any other matter regarding the PIC‚ regardless of when it is alleged to have occurred‚ on condition that such other investigations‚ findings and recommendations do not cause any delay in the submission of the reports on the applicable dates [1 January 2015 to 31 August 2018]‚” the Gazette notice reads.


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