CORPORATE governance at the Public Investment Corporation (PIC) was thrust into the spotlight once more after it announced the suspension of its chief operating officer (COO), Vuyani Hako, following allegations of misconduct, just two years after he was hired as a clean broom to clear up any ethical issues.
This comes amid a slew of resignations at the asset management company, indicating that all is not well at the firm.
In a statement, the PIC said Hako had been placed on precautionary suspension following allegations of misconduct made against him.
“The PIC believes that the suspension is in the best interest of both the employee and the employer to ensure that an independent enquiry can proceed unencumbered,” the entity said.
The PIC said its executive head: research projects development, Sholto Dolamo, who had been in the ranks for 10 years and until recently was the chief investment officer, had tendered his resignation from the organisation effective at the end of June.
Another resignation is that of Lusanda Kali, the acting executive head for developmental investments and private equity, which is also effective at the end of June.
“The PIC would like to express its gratitude to Dolamo and Kali for their service and wish them all the best as they pursue new challenges and opportunities,” it said.
It said it assured all its stakeholders that the resignations and suspension of the COO would not destabilise the organisation from delivering on its investment mandate.
“The recent appointment of Kabelo Rikhotso as CIO (chief information officer), combined with an established skills pool, will ensure that the PIC continues to deliver on its investment objectives,” it said
The PIC, which manages roughly R2.3 trillion in investments in government pension funds, appointed Hako as the COO in 2000. At the time Hako was the PIC’s executive head for properties and had previously acted as CEO between March 2019 and July 2020.
In 2020 then finance minister Tito Mboweni appointed CEO Abel Sithole, who was tasked with turning the embattled state fund manager around amid allegations of dodgy dealings and corruption at the firm.
The PIC had been mandated to clean up the company by the Mpati Commission of Inquiry.
In the PIC’s 2021 annual report, it noted the recommendations made by the commission and said it had approved an anti-fraud and corruption policy, an investigation model, and changes to the operating model.
Of note, it said, “Further investigations comprise 23 percent of the recommendations and represent the most challenging area in addressing the report. Typically, these are more complicated, requiring further investigations and other legal processes that involve other parties such as the police and prosecuting authorities, the shareholder, regulators and clients”.
This as the findings of the commission also pointed to failures in the investment process and possible unethical behaviour, insufficient effort in analysing investments, and/or inadequate attention to avoid investments that are likely not to meet growth and income expectations.
Then last November, the Cabinet announced a new board for the PIC, on behalf of public servants. This was after the previous interim board's term ended on October 30, 2021.
philippa.larkin@inl.co.za
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