FSCA probes PIC as CEO Patrick Dlamini suspended amid whistleblower claims
The Financial Sector Conduct Authority (FSCA) has launched a formal investigation into the Public Investment Corporation (PIC), as governance concerns deepen following the precautionary suspension of its Chief Executive Officer, Patrick Dlamini.
In a statement, the FSCA said it is increasingly concerned about recent developments at the PIC, particularly those relating to leadership stability, transparency and the potential impact on confidence in one of South Africa’s most important financial institutions.
The PIC, which manages more than R3 trillion in assets, is the country’s largest asset manager and oversees the Government Employees Pension Fund (GEPF), holding significant stakes in both listed and unlisted companies.
The regulator stressed that the institution carries heightened responsibility to uphold the highest standards of governance, accountability and integrity.
The investigation, to be conducted under Section 135 of the Financial Sector Regulation Act, follows recent media reports, whistleblower allegations, and leadership changes at the entity.
Central to the developments is the PIC board’s decision to place CEO Patrick Dlamini on precautionary suspension in line with its whistleblower policy.
The board said the move is intended to allow Dlamini space to respond to allegations of impropriety contained in a whistleblower report submitted last month.
"The board believes it is necessary to provide Mr Dlamini sufficient space and time to respond to allegations of impropriety," the PIC said, adding that the suspension does not imply any finding of wrongdoing.
The decision comes amid mounting scrutiny over the PIC’s handling of the Lanseria Airport investment matter. This includes the emergence of a confidential forensic report by PwC, which has since been made public, and PIC chairperson David Masondo’s referral of aspects of the matter to the Special Investigating Unit (SIU).
Dlamini, who was appointed in June 2025 with a mandate to stabilise the PIC’s underperforming unlisted investment portfolio, known as the Isibaya Fund, now faces uncertainty over his tenure as the investigation unfolds.
The board has moved to ensure continuity, confirming that interim leadership arrangements are being finalised. It also announced that August van Heerden will step down as Acting Chief Investment Officer, following a resolution by the GEPF, the PIC’s largest client.
To maintain stability in investment operations, the PIC has appointed veteran investment professional Leon Smit as Acting Chief Investment Officer. Smit, who has more than 30 years of experience and has been with the PIC since 2000, will oversee fixed income investments and trading activities while ensuring risk management and performance continuity.
The FSCA emphasised that, as an authorised financial services provider, the PIC remains subject to its oversight, and that the outcome of the investigation will be critical to safeguarding public confidence and the integrity of South Africa’s financial system.
