And now the PIC chair is gone — David Masondo quits

Chair of the Public Investment Corporation (PIC) David Masondo has resigned from the position.

Masondo, who is also the deputy finance minister, tendered his resignation on Thursday, three days before a board meeting, which Business Day understands was going to see the board dissolved.

His resignation is the latest development in a governance crisis over recent months that has engulfed Africa’s largest fund manager. The FSCA financial regulator sent a sharply worded letter to the board over governance failures and non-disclosure of a whistle-blower report.

Four non-executive directors — Dorothy Kobe, Lerato Makwetla, Lindy Bodewig and Mpumelelo Maseko — resigned from the PIC on Monday, bringing to six the number of non-executive directors to quit the asset manager in the past week. It piles pressure on finance minister Enoch Godongwana to intervene urgently amid a deepening leadership vacuum that leaves the R3.6-trillion asset manager without a permanent CEO or chief investment officer (CIO).

The root cause traces to a power struggle between Masondo and suspended CEO Patrick Dlamini, whose restructuring of the CIO role and cleanup of the troubled unlisted portfolio reportedly clashed with Masondo. This was compounded by the fallout from a PwC report criticising the roughly R400m Acapulco payout tied to the Lanseria Airport deal and separate value destruction from a R2bn investment in property group GRIT.

“To help restore stability to the PIC after the period of instability that has followed the appointment of the new board eight months ago, I hereby resign as a non-executive director and chair of the board. My hope is that this decision will allow the institution to move forward with renewed focus and confidence,” Masondo said in a letter dated July 23.

“I further confirm that under my chairpersonship it has increased its investment portfolio by more than R1 trillion, and the Mpati recommendations within the PIC’s control were implemented to address good governance deficiencies, as the minister confirmed in various parliamentary sessions.

“Due to time constraints, I will in due course furnish you with further and full reasons that led to this noble decision.”

In a statement, Masondo said he was stepping aside to remove any distraction from the PIC’s mandate, even as he maintained the board discharged its duties faithfully. He called for outstanding matters to be pursued rather than shelved, naming a whistleblower report, allegations against the chief executive, and the Acapulco matter, which he had referred to the Special Investigating Unit.

He noted some of these issues are due before the high court on July 28 2026 and said the judicial process should proceed without interference.

“It is my considered view that the judicial process should be allowed and enabled to proceed unhindered. For the sake of transparency and accountability, it is important that these issues be determined by the courts and brought to their proper legal conclusion, despite the resignation of the previous Board,” the statement reads.

“While I believe the Board discharged its responsibilities faithfully, leadership requires placing the institution above oneself. It is therefore prudent that I step aside to avoid any uncertainty or distraction that could affect the stability of the PIC or undermine confidence in its work.”

He also urged the incoming board to press ahead with governance and investment reforms in the unlisted portfolio and to fill critical executive vacancies with urgency.

-With Kabelo Khumalo