PIC board faced division, tension over Matjila corruption allegations - Gungubele

Deputy Finance Minister and chair of the board of state-run asset manager the PIC Mondli Gungubele testified on Monday how the allegations of corruption against former CEO Dan Matjila led to a strain among board members.

The PIC is a government-owned investment vehicle that manages some R2trn of state employee pension funds.

Gungubele was testifying for the first time on Monday before the inquiry, headed by former president of the Supreme Court of Appeal, Justice Lex Mpati. 

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Matjila faced a forensic probe regarding the awarding of a loan to a woman who was said be his girlfriend, Pretty Louw.

Matjila was later found not guilty of any misconduct, although there were issues that required “deeper interrogation” according to Gungubele. He resigned in November 2018. 

Gungubele told the inquiry on Monday that the board "found itself divided on issues relating to the former CEO Dr Matjila”.

Pro and anti-Dan camps

He said divisions also played out when reviewing some of the decisions he took, creating an impression that there were “pro and anti-Dan camps in the board”.

“Directors including myself have expressed very strong views on matters relating to the CEO,” he said, adding that there was often tension.In his affidavit, Gungubele said one example of friction was when the majority of the board had refused to have Matjila subjected to an investigation.

“The minister had to intervene and issue a directive that the board conduct an investigation,” he said.

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Gungubele said on Monday that the only people who held dissenting views over the handling of Matjila’s  corruption claims, apart from himself, was Deputy Chairperson and fellow board member Sibusisiwe Zulu.

Gungubele is still the chair of the PIC, although he and and rest of the board asked to resign at the start of February.

He told the inquiry on Monday that Finance Minister Tito Mboweni had received the board's resignation letter, but had replied to say he was too busy preparing for the Budget to immediately give it his full attention. 

The current board will stay on until Mboweni announces the new board.