PIC chair David Masondo resigns
The chairperson of the Public Investment Corporation (PIC), David Masondo, has resigned from his position as a non-executive director and chair, saying the decision is aimed at restoring stability and confidence in the country’s largest asset management institution.
The deputy finance minister announced his resignation on Thursday, after what he described as "careful reflection", saying he was stepping aside in the interests of the country, the PIC and the millions of South Africans whose savings are invested through the institution.
The resignation comes eight months after the appointment of the current PIC Board, amid a period of instability and scrutiny around governance issues at the state-owned asset manager.
In his resignation letter to Finance Minister Enoch Godongwana, Masondo said the PIC should remain a model of good governance, given its role as South Africa's largest asset management entity.
He said during his tenure as chairperson, the PIC increased its investment portfolio by more than R1 trillion and implemented recommendations from the Mpati Commission that fell under the institution’s control to address governance shortcomings.
Masondo said his decision to step down was intended to allow the PIC to move forward without distractions.
"To help restore stability to the PIC after the period of instability that has followed the appointment of the new Board eight months ago, I hereby resign as a Non-Executive Director and Chairperson of the Board. My hope is that this decision will allow the institution to move forward with renewed focus and confidence."
In a separate statement, Masondo said his role as board chair was to act in the best interests of the institution and the beneficiaries whose retirement savings are managed by the PIC.
He said he acted with integrity and in good faith while carrying out his fiduciary responsibilities.
"I am pleased to note that the Minister of Finance has recognised that, in performing my duties, I acted with integrity and in good faith. Throughout my tenure, I sought to discharge my fiduciary responsibilities without fear or favour."
The PIC manages assets on behalf of public sector employees, including the Government Employees Pension Fund, and plays a key role in South Africa’s investment landscape.
Masondo said the institution’s mandate extends beyond asset management to support economic growth, industrialisation, entrepreneurship, and investment in South African businesses.
He added that the previous board had worked to strengthen governance, improve institutional controls and advance the implementation of recommendations from the Mpati Commission.
"Together with management and staff, we advanced the implementation of the Mpati Commission recommendations, strengthened governance, reinforced institutional controls, and continued supporting South African businesses, industrialists, and entrepreneurs in pursuit of inclusive economic growth."
Masondo also raised concerns about outstanding matters involving the previous board, including a whistleblower report, allegations against PIC CEO Abel Sithole, and the Acapulco matter, which he said had been referred to the Special Investigating Unit (SIU).
He said these matters should continue to be investigated and resolved through proper legal processes.
"For the sake of transparency and accountability, it is important that these issues be determined by the courts and brought to their proper legal conclusion, despite the resignation of the previous Board."
Masondo said he hoped the new board would continue with governance and investment reforms, particularly in the PIC’s unlisted investment portfolio, and address critical vacancies within the organisation.
The PIC is expected to begin the process of appointing new leadership following Masondo’s resignation.
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