Godongwana says PIC crisis about governance, not politics
Updated Aug. 4, 2026, 10:54 a.m. | By Mmangaliso Khumalo Finance Minister Enoch Godongwana says the issues facing the Public Investment Corporation (PIC)…
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Updated Aug. 4, 2026, 10:54 a.m. | By Mmangaliso Khumalo
Finance Minister Enoch Godongwana says the issues facing the Public Investment Corporation (PIC) stem from governance failures rather than personal or political disputes, as investigations into South Africa's largest asset manager intensify.
Speaking to SABC News, Godongwana rejected suggestions that tensions involving himself, former PIC board chairperson and Deputy Finance Minister David Masondo, and PIC executives were the result of internal political battles.
READ: PIC chair David Masondo resigns
The minister said concerns around the PIC had been raised by several independent institutions, including regulators and law enforcement bodies, pointing to deeper governance challenges within the organisation.
"I'm not fighting with anybody in the PIC. What has cropped up are governance issues. The regulator, which is the Financial Sector Conduct Authority, is conducting an investigation. The Auditor-General has raised issues, which he called material irregularities, which have been submitted to the SIU."
Godongwana said the concerns were not limited to his own assessment of the institution, adding that the PIC's previous board chairperson had also requested further investigations.
"The board chairperson himself has asked the President to appoint an SIU to investigate. The Public Protector is investigating the PIC. All of those things point to a governance failure."
The PIC manages more than R3 trillion in public sector investments, including funds on behalf of the Government Employees Pension Fund, making its stability and governance a matter of national importance.
Cabinet recently appointed a new PIC board as the government moves to restore confidence and accelerate the implementation of reforms recommended by the Mpati Commission of Inquiry.
The new board is chaired by Deputy Minister of Planning, Monitoring and Evaluation Seiso Mohai, following the resignation of former chairperson David Masondo.
Masondo stepped down last week, saying his resignation was intended to restore stability and confidence in the institution.
PIC REMAINS FINANCIALLY STABLE
Despite the governance concerns, Godongwana stressed that the PIC is financially sound and does not face a liquidity crisis.
"Don't worry. The PIC is liquid. We don't have a liquidity problem in the PIC. We've got governance failures, which have been seen by other institutions, not only by me."
The minister said the institution's size and influence require urgent attention, noting that the South African Reserve Bank had raised concerns that the PIC could pose a systemic risk due to its extensive role across the economy.
"The Reserve Bank governor, although they do not regulate the PIC, is pointing to an important point that the PIC, by its very nature, its tentacles throughout the economy, is becoming a systemic risk in the economy. Therefore, they want to regulate it as well."
The PIC has faced increased scrutiny following a…