JOHANNESBURG - The leadership crisis at the Public Investment Corporation (PIC) is worsening.
Board Chairperson David Masondo and four non-executive directors resigned this week.
PIC CEO Patrick Dlamini has also been placed on precautionary suspension.
The latest resignation will put the SOE under more scrutiny, given that it manages more than R3-trillion in assets.
READ | PIC board chairperson David Masondo resigns
Corusca Consulting Director Khaya Sithole said Masondo’s exit leaves the PIC leaderless.
He said before Masondo decided to resign, there had already been a walkout of board members.
This, he said, already signaled a show of no confidence in the leadership of that board at that particular point in time.
Sithole also argued that there would have been members of the board who expressed their loss of faith in Masondo's ability to lead the institution through this particular crisis.
“Of course, now that he's left, it means we are never going to hear the answer from him directly, and that is obviously a lost opportunity.
Masondo framed his exit as putting the PIC’s stability first and the “confidence of the millions of South Africans whose savings are entrusted to this institution”.
This as allegations of questionable governance have emerged at the PIC.
Masondo, who reflected on his tenure said he acted with “integrity and in good faith”.
READ | Two non-executive directors resign after acting PIC CEO appointment
He further emphasised that all board decisions were made based on sound legal counsel and strict adherence to governance principles.
Mosondo was not shy to throw down a challenge to the incoming leadership and executive team.
He said they should build on the foundation laid by the outgoing Board.
This, he said, includes investigating the whistleblower report, the allegations against the CEO, the Acapulco matter referred to the SIU, and other related issues.
Sithole noted all of Masondo’s remarks and requests but said, it is important to find a way of understanding exactly what led to the recent crisis before putting a new board of directors in place, who are going to be responsible for this entity.
“If they walk in blindsided, then you run the risk that they might also get trapped by the pitfalls that obviously became the issue for this board,” he said.