South Africa’s Financial Sector Conduct Authority has launched a formal investigation into the Public Investment Corporation. The market regulator cited growing concerns over governance, leadership stability, and corporate transparency at the state-owned firm.
The probe follows the dramatic suspension of Chief Executive Patrick Dlamini on Monday. The board placed Dlamini on precautionary leave following an anonymous whistleblower complaint detailing alleged operational improprieties.
The regulator stated it has become “increasingly concerned by recent developments” at the entity. Officials noted that ongoing leadership friction raises “serious questions” regarding overall institutional integrity.
The dispute centers on a contested forensic investigation into the Lanseria Airport transaction. Critics question the authorization of the audit, which sparked a massive legal challenge from local business stakeholders.
The asset manager controls over 3 trillion rand ($183 billion) in public funds. It represents the single largest institutional investor active on the Johannesburg Stock Exchange.
The Government Employees Pension Fund recently demanded immediate leadership structural changes. Consequently, acting chief investment officer August van Heerden was replaced by fixed-income specialist Leon Smit.
The corporation’s board quickly issued a statement welcoming the formal external oversight. Directors confirmed they have already provided essential documentation to investigators to ensure accountability.
“The board remains fully committed to cooperating with all regulators,” the state firm announced. Management clarified that the CEO’s temporary suspension does not constitute an official finding of wrongdoing.
This regulatory intervention signals deep skepticism over the asset manager’s recent operational reforms. The FSCA has not yet confirmed the anticipated duration of its statutory investigation.
