South African President, Cyril Ramaphosa has agreed to set up a commission of inquiry into alleged governance failures at the state-owned pension fund.
The country’s Finance Ministry said on Thursday in Johannesburg that the commission’s terms of reference will include a review of the Public Investment Corporation-PIC’s governance and operating model, possible changes to its founding legislation and its Memorandum of Incorporation, and investment decision-making framework.
PIC, which manages roughly 1.9 trillion Rand (130 billion dollars) of civil servants’ pensions, has come under fire after an opposition party alleged that its chief executive, Dan Matjila had misused funds and made careless investment decisions. Both parties have denied the allegations.
The Treasury ordered the probe in July but it was up to Ramaphosa to formally anoint the process which he has now done.
It is hoped that the probe would bring possible changes to the Public Investment Corporation’s founding legislation.
