- The PIC said its sudden exodus of board members was expected.
- The resignations raised concerns about the PIC's stability, given that the company is still in the process of regaining its credibility.
- On Thursday, the PIC said its board is stable and continues unhindered with the task of implementing the recommendations of the Mpati Commission.
The Public Investment Corporation (PIC) says there is nothing untoward about the exodus of board members as they had indicated at their reappointment that they would not stay on for the full term.
The state-owned asset manager has been rocked by the departures of board members that Finance Minister Tito Mboweni appointed in 2019. It is left with only seven members of the original interim board after seven resignations and the passing of Dr Xolani Mkhwanazi in early 2020.
The more recent resignations of prominent businesswomen - Maria Ramos, Irene Charnley and Sindi Mabaso-Koyana - as well as one male director, Bhekithemba Gamedze, raised concerns about the PIC's stability, given that the company is still in the process of regaining its credibility and has not implemented some of the recommendations of the Mpati Commission of Inquiry.
But in a statement released on Thursday, the PIC said its board is stable and continues unhindered with the task of implementing the recommendations of the Mpati Commission.
The commission found that there had been "substantial impropriety" at the state-owned asset manager and its board is said to have been "divided and conflicted".
"A presentation on the implementation of the Mpati Commission recommendations was made by the minister, National Treasury and PIC to the Standing Committee of Finance at the end of November 2020 and significant progress has been made in this regard," wrote the PIC in a statement.
Expected resignations
The PIC said that the interim board that was appointed in July 2019 was there to serve for a period of 12 months. When Mboweni extended its term by 15 months in July 2020, some board members indicated that they would not be serving on the board for the full duration of the new term.
Ramos, Charnley, Mabaso-Koyana, and Gamedze were among those.
"The departure of these board members was expected, as they had made it known at the time when their term was extended. Their departure was for personal reasons and not a reflection on the PIC," said the company in a statement.
The PIC said the finance ministry has since appointed former Old Mutual Personal Finance MD and TymeBank board member Karabo Morule as well as former chairperson of Deloitte South Africa's board, Futhi Mtoba, to its interim board.