Non-executive director to chair PIC board

Thursday, July 25, 2019

The Deputy Finance Minister will no longer chair the Public Investment Corporation (PIC), Minister Tito Mboweni has announced. 

Mboweni made the announcement during an introductory address at the induction of the new PIC interim board on Thursday. 

The Minister said there was nothing in law that said the Deputy Finance Minister, or any other Minister, should chair the PIC board of directors. Mboweni, instead, said he believed that this was “bad practice”.

Mboweni said Cabinet recently took a decision that non-executive directors would now chair the PIC, rather than politicians.

“… Based on how boards of directors are supposed to operate, [I think having a Deputy Minister or Minister chair the PIC] was a bad decision, but they had their reasoning. It started when they were constituting an organisation and they needed to be helped along (sic). That practice should have ended at some stage.”

Mboweni questioned why the Deputy Finance Minister only chaired the PIC interim board and not any other public entity. 

He thanked the incoming board for accepting their appointment. He warned board members to brace themselves for criticism but urged them to ignore this and focus on corporate governance at the PIC and leave politics to politicians. 

The board chairperson, deputy chairperson and audit committee were expected to be appointed during today’s meeting. 

“The [audit committee] immediately needs to sort out the financial reporting that is supposed to happen,” he said, adding that it was important for the audit committee to “get down to work”.

Mboweni said the other subcommittee could be dealt with in time. He said he wanted to use the meeting as an opportunity to thank the board members for accepting the appointment. During the meeting, the board would also be formally constituted.

The new 13-member interim board was appointed on 11 July and is made up of:

  • Ms Sindi Mabaso–Koyana
  • Ms Irene Charnley
  • Ms Tshepiso Moahloli
  • Ms Maria Ramos
  • Ms Barbara Watson
  • Mr Ivan Fredericks
  • Mr Zola Saphetha
  • Mr Bhekithemba Gamedze
  • Dr Angelo David Sabelo de Bruin
  • Prof Bonke Dumisa
  • Advocate Makhubalo Ndaba
  • Dr Reuel Khoza
  • Mr Mugwena Maluleke 

Board members Pitsi Moloto and Xolani Mkhwanazi were also reappointed.

The appointments followed the start of public hearings into allegations of impropriety at the corporation in January.

The PIC - which is wholly owned by government - is the only investment management company in South Africa that focuses exclusively on the public sector. –