A South African high court has declared the precautionary suspension of Public Investment Corporation (PIC) Chief Executive Officer Patrick Dlamini unlawful and invalid, ordering his immediate reinstatement to lead the state asset manager.
According to a Gauteng High Court judgment, the board acted beyond its powers (ultra vires) by bypassing mandatory statutory procedures and failing to obtain required ministerial approval.
Handing down the ruling, Judge Mandla Mbongwe stated, “None of these prerequisites were met. The board acted unilaterally, without ministerial approval, and in disregard of its own policies.”
The judge added that while whistleblower protections safeguard informants, they do not confer suspension powers on the board, nor can internal guidelines override binding statutory and contractual provisions.
The court also dismissed intervention applications by third parties and ordered the board to pay Dlamini’s legal expenses, including the costs of two counsel on Scale C.
The ruling resolves weeks of leadership turmoil at the state-owned institution, which manages over R3 trillion ($183 billion) in government pension funds and public assets across key economic sectors.
Dlamini was suspended on July 13 following whistleblower allegations. However, the court warned that executive disruption risked profound harm to the national economy, creating potential sovereign rating risks.
Despite his legal victory, Dlamini returns as the Financial Sector Conduct Authority conducts regulatory inquiries, while separate litigation involving a R900-million damages claim remains pending against him.
