The Public Investment Corporation has suspended its CEO, Patrick Dlamini, who has been at the helm of the asset management major for just over a year, throwing the company into yet more leadership turmoil months after the acrimonious departure of its chief investment officer (CIO).
Dlamini was appointed to the role in June 2025 with a mandate to, among other things, clean up the entity’s embattled unlisted investment book, the Isibaya Fund, which has been dogged by underperformance and disastrous investments over the years.
On Monday, the PIC — the biggest investor on the JSE with assets north of R3-trillion — cast doubt on whether Dlamini would finish his term following allegations of wrongdoing, which have culminated in his suspension.
“The board believes it is necessary to provide Mr Dlamini sufficient space and time to respond to allegations of impropriety against him that were submitted to the board in a whistleblower report last month,” a PIC statement says.
Some of these allegations involve Dlamini’s handling of a decade-old BEE deal involving the Lanseria Airport that was in dispute without proper board approval.
“In line with applicable labour legislation and internal PIC policies, the precautionary suspension is intended to ensure a fair, objective and independent investigation into these allegations,” the PIC adds.
“The suspension does not, in any way, constitute a finding, nor is it a pronouncement of any wrongdoing on the part of the CEO.
“The board is finalising interim arrangements for the position of acting CEO and will make further announcements in due course.”
The decision to suspend Dlamini was taken by internal vote during a special board meeting, led by chair (and SA deputy finance minister) David Masondo.
Two weeks earlier, finance minister Enoch Godongwana intervened in the growing rift, brokering an agreement that the whistleblower allegations must be formally handled by the PIC’s internal audit unit, which paved the way for the board’s decisive vote.
The board factored in a formal resolution from the PIC’s largest client — the Government Employees Pension Fund (GEPF), the fund holding the pensions of SA’s 1.3-million civil servants — which prompted them to strip August van Heerden of his role as acting CIO at the same time.
Van Heerden stepped in after the ouster of Kabelo Rikhotso in March after the PIC parted ways with Rikhotso, who had been on precautionary suspension for five months.
Rikhotso’s suspension also followed a whistleblower complaint.
By parting “amicably”, the details of the allegations were never made public or tested.
Dlamini’s suspension comes in the middle of a shakeup of the PIC’s corporate structure, which he is spearheading.
Part of the leadership overhaul he was pushing for is a separation of the CIO role into three distinct roles: one for the listed space; one for the problematic unlisted investments; and the other for the equally troubled property portfolio.
Leon Smit, current head of fixed income in listed investments for the PIC, will step up to the role of CIO on an interim basis.
“Smit is a highly accomplished investment professional with more than three decades of experience in fixed income, treasury management and financial markets,” the PIC said.
“He joined the PIC in August 2000 and currently leads the management of listed fixed-income investments and cash flows in accordance with client mandates.
“He is responsible for overseeing the PIC’s listed fixed-income dealing activities on the domestic market and driving investment performance while maintaining prudent risk management.” — Business Day